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MissionEducate...

Every Child, Every Day

VisionPoudre School District

exists to support and

inspire every child

to think, to learn, to

care, and to graduate

prepared to be successful

in a changing world.

2014

For the �scal

year ended

June 30, 2014

Fort Collins, Colorado

Poudre School District

ComprehensiveAnnualFinancialReport

For the Fiscal Year Ended June 30, 2014

Prepared by:Poudre School DistrictFinance Department

Molly JanzenController

Kera BadalamentiAssistant Controller

Published December 10, 2014

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2014 Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2014

Table of Contents

Page Introductory Section Letter of Transmittal ..................................................................................................................... 1-7 GFOA Certificate of Achievement for Excellence in Financial Reporting .................................... 8 ASBO Certificate of Excellence in Financial Reporting ............................................................... 9 Organization Chart ....................................................................................................................... 10 List of Elected and Appointed Officials ........................................................................................ 11 Financial Section Independent Auditors’ Report .................................................................................................. 12-14 Management’s Discussion and Analysis................................................................................. 15-28 Basic Financial Statements Government-Wide Statement of Net Position ....................................................................... 29 Government-Wide Statement of Activities ............................................................................. 30 Fund Financial Statements Governmental Funds Balance Sheet .............................................................................. 31 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ........................................................................................... 32 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances ......................................................................................................... 33 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ..... 34 Proprietary Funds Statement of Net Position ................................................................. 35 Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position .................................................................................................................. 36 Proprietary Funds Statement of Cash Flows .................................................................. 37 Private-Purpose Trust Fund Statement of Fiduciary Net Position .................................. 38 Private-Purpose Trust Fund Statement of Changes in Fiduciary Net Position ............... 39 Discretely Presented Component Units Statement of Net Position ................................ 40 Discretely Presented Component Units Statement of Activities ..................................... 41 Notes to Basic Financial Statements ..................................................................................... 42-70 Required Supplementary Information General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual (Non-GAAP Budgetary Basis)........................ 71-72 Reconciling Schedule of Actual Revenues, Expenditures and Changes in Fund Balances—GAAP Basis to Non-GAAP Budgetary Basis ................................ 73-74 Major Special Revenue Fund—Designated Special Purpose Grants Fund—Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual ............ 75

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2014 Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2014

Table of Contents

(Continued) Page

Required Supplementary Information (Continued) Major Special Revenue Fund—Public School Activities Fund—Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual ............ 76 Notes to Required Supplementary Information ..................................................................... 77 Supplementary Information Fund Information ................................................................................................................... 78 Debt Service—Bond Redemption Fund—Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual ............................................................... 79 Capital Projects—Building Fund—Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual ........................................................... 80 Enterprise Fund—Food Service Schedule of Revenues, Expenses and Changes in Fund Net Position— Budget and Actual ....................................................................................................... 81 Internal Service Funds Combining Statement of Net Position ............................................................................. 82 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ...... 83

Employee Self-Insurance—Internal Service Fund—Schedule of Revenues, Expenses and Changes in Fund Net Position—Budget and Actual ................................................ 84 Warehouse—Internal Service Fund—Schedule of Revenues, Expenses and Changes in Fund Net Position—Budget and Actual ................................................ 85

Combining Statement of Cash Flows ............................................................................. 86 Private-Purpose Trust Fund—Schedule of Changes in Fiduciary Net Position— Budget and Actual ............................................................................................................. 87 Statistical Section Statistical Section ......................................................................................................................... 88 Table I Net Position by Component ............................................................................................ 89-90 I I Changes in Net Position ................................................................................................. 91-94 I I I Fund Balance, Governmental Funds .............................................................................. 95-96

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2014 Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2014

Table of Contents

(Continued)

Table Page

IV Changes in Fund Balance, Governmental Funds ........................................................... 97-100 V Property Tax Levies and Collections .............................................................................. 101 VI Property Tax Rates (Mills)—All Direct and Overlapping Governments .......................... 102 VII Assessed Value and Estimated Actual Value of Taxable Property ................................ 103 VIII Principal Property Taxpayers ......................................................................................... 104 IX Revenues by Source, Governmental Funds ................................................................... 105-106 X Ratios of Debt Outstanding and Outstanding Debt by Type ........................................... 107 XI Legal Debt Margin Information ........................................................................................ 108 XII Direct and Overlapping Governmental Activities Debt ................................................... 109 XIII Demographic Information ................................................................................................ 110 XIV Major Employers ............................................................................................................. 111 XV Building Statistics ............................................................................................................ 112-114 XVI Full-Time Equivalent District Employees ........................................................................ 115 XVII Certified Staff Data .......................................................................................................... 116 XVIII Free and Reduced Student Lunch Participation by School ............................................ 117

Colorado State Mandated Schedule Section Auditors Electronic Financial Data Integrity Check Figures ......................................................... 118

IntroductorySectionLetter of Transmittal

GFOA Certificate of Achievement forExcellence in Financial Reporting

ASBO Certificate of Excellence in FinancialReporting

Organization Chart

List of Elected and Appointed Officials

December 3, 2014 Board of Education and Citizens Poudre School District Fort Collins, Colorado Colorado law requires that local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with auditing standards generally accepted in the United States by a firm of licensed certified public accountants. Pursuant to that requirement, we present the Comprehensive Annual Financial Report of Poudre School District for the fiscal year ended June 30, 2014. This report consists of management’s representations concerning the financial aspects of Poudre School District. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the information presented, including all disclosures, rests with the Financial Services Department of Poudre School District. To provide a reasonable basis for making these representations, management of Poudre School District has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of Poudre School District’s financial statements in conformity with GAAP. Because the cost of the internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of all operations of the various funds of the District. All disclosures necessary to enable the reader to gain an understanding of Poudre School District’s financial activities have been included. CliftonLarsonAllen LLP, a firm of licensed certified public accountants, has audited Poudre School District’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of Poudre School District for the fiscal year ended June 30, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonable basis for rendering an unmodified opinion that the financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of Poudre School District was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the District’s Single Audit Report for the fiscal year ended June 30, 2014. Management has provided a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it.

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Profile of the District Poudre School District (the District) is the reporting entity for financial reporting purposes, and is not included in any other governmental reporting entity. The financial statements of the District include all funds that are controlled by the publicly elected seven-member Board of Education. The Board of Education adopts the budget, selects management, significantly influences operations, and is primarily accountable for fiscal matters. The District was formed in the 1960-61 school year during a school district consolidation, and is now comprised of 52 schools: 6 high schools (4 comprehensive and 2 alternative), 9 middle schools, 30 elementary schools (including 25 neighborhood schools, 3 remote mountain area schools, and 2 specialized non-neighborhood elementary schools), an expeditionary learning and lab school serving grades K-12, an online school serving grades K-12, a home options school, and 4 charter schools. All school buildings are either new or remodeled in the past 25 years. A large number of the non-mountain schools are located within the City of Fort Collins, Colorado, which is sixty miles north of Denver. The geographic area of Poudre School District is 1,856 square miles located primarily within Larimer County, making it one of the largest districts in Colorado. Included in the District are the City of Fort Collins, the Towns of Timnath, Wellington and a portion of Windsor, and the communities of Bellvue, Laporte, Livermore, Poudre Canyon and Red Feather Lakes. Student enrollment has increased slightly in the last five years with less than a 2.0 percent increase for each of the last three years; K-12 enrollment was 27,564 for the 2013-14 school year and is projected to increase another 1.8% to approximately 28,060 students. Approximately 11,900 of these students were transported by the District's bus services each day, and an estimated 11,000, students per day ate the regular school lunch provided by the District's food services. The District employed approximately 3,200 full-time equivalent units. Teachers average 12 years experience and 66 percent hold master’s degrees and above. More than 16,000 parents and community members directly support student education by serving on School Accountability Committees, the District Accountability Committee, the District Advisory Board, or by volunteering. Poudre School District (referred to as the primary government in some portions of this document) provides a full range of educational programs and services authorized by Colorado State Statutes. Included are basic kindergarten through twelfth-grade (K-12) education as well as preschool, special, vocational, gifted and talented, bilingual education and numerous services and programs. The District’s standards-based curriculum challenges all students to achieve at high levels, meeting or exceeding the state’s educational requirements. While the District’s K-12 curriculum is delivered in its neighborhood school system, the District offers a variety of programs that meet academic standards through alternative curricula and instructional delivery methods. The District’s “School Choice” program allows families to select schools that meet their children’s educational needs. These offerings include International Baccalaureate, Core Knowledge Curriculum, Bilingual Immersion, Expeditionary Learning, elementary focus schools, non-traditional/non-graded, advanced placement, post-secondary college credit, alternative secondary, and online programs. The District is fully accredited by the Colorado Department of Education Accreditation and Accountability Unit maintaining a positive rating in all four Key Performance Indicators. The District is subject to periodic monitoring to ensure continued compliance with accreditation standards. The District has never lost its accreditation. Component units are included in the District’s reporting entity because of the nature and significance of their operational or financial relationship with the District. Included as component units are three charter schools (Liberty Common School, Ridgeview Classical Schools, and Mountain Sage Community School). A fourth charter school, Fort Collins Montessori, began operations during the 2014-15 school year. For more information related to these component units, refer to Note 1 in the Notes to Basic Financial Statements. Achievement Poudre School District prides itself on providing an outstanding education to our students. The mission of the District is “Educate…Every Child, Every Day” while the vision states “Poudre School District exists to support and inspire every child to think, to learn, to care, and to graduate prepared to be successful in a changing world.” Following are some highlights related to achievement during the 2013-14 school year.

PSD graduates earned $35 million in scholarships with multiple students attending prestigious universities: Boston University, American University, Brown, Cornell, Dartmouth, Duke, Notre Dame, Middlebury, NYU, Princeton, UC at Berkeley, University of Chicago, Pratt Institute, Lewis and Clark

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College, Brigham Young University, Colorado School of Mines, University of Colorado, Colorado State University, Cornell College, Dartmouth, Virginia Polytechnic Institute and State University, and U.S. military academies.

PSD has an amazing number of students who have been selected as prestigious scholars including one Presidential Scholar, nine National Merit Scholars, six Boettcher Scholars and six Daniels Fund scholars. In addition, several students were selected as National Hispanic Recognition Scholars. A total of 430 PSD high school students, who took national AP exams, received awards at four levels based on their test results on classes completed and 79 students are candidates for the International Baccalaureate diploma.

88% of graduates completed at least one post-secondary class prior to graduation. 3rd grade students’ TCAP reading scores showed 83.5% ranked proficient and above in 2013-14. PSD’s district-wide averages for students scoring proficient and advanced remain well ahead of state

averages, ranging from 7-14% higher across all subjects, at all grade levels. Dropout rate was 1.5% in 2012-13. 11th and 12th grade students consistently perform higher than students statewide and nationwide on

ACT and SAT college entrance exams. PSD students scored an average composite score of 22.3, compared to 20.1 statewide on the 2013 ACT with four students earning a perfect score of 36.

Numerous students across the District were awarded local, regional, state or national recognition. PSD also continues to address the needs of its lower-rated schools on a number of levels:

Improvement Plans are being implemented in all schools to address strategies for helping low-performing students. Improvement strategies are listed in each school’s accountability plan.

PSD receives extensive diagnostic analyses from the TCAP and MAP testing programs to improve instruction. These assessment results provide detailed information regarding student progress toward learning the Colorado Academic Standards. PSD is providing expanded data analysis training for teachers, principals, and curriculum facilitators so they can effectively use the data to improve instructional strategies.

PSD continues to educate parents and encourage parental support and involvement in their student’s education.

Economic Condition and Outlook The nation’s economy is expected to strengthen as it builds on the progress that has been made in the past several years. The momentum is strong enough that the economy has rebounded from a first quarter contraction and the labor market has begun to slowly improve. Most sectors of the economy are adding jobs and the unemployment rate is falling. The number of people leaving the labor force continues to climb, but much of this appears to be for structural rather than cyclical reasons. As slack in the labor force gradually wanes, upward pressure on wages will help the economy build momentum. Because of this the Federal Reserve has suggested that they will continue to tighten monetary policy. Colorado’s economy continues to strengthen, with a tightening labor market and improving retail trade joining residential and nonresidential construction as reasons for optimism. Relative to the nation, Colorado has lower levels of unemployment and underemployment, a higher level of labor force participation, and higher median home prices, especially when measured as a percentage of pre-recession prices. This section identifies four recent indicators that suggest an even stronger expansion in Colorado: growth in the labor force, new jobs in construction, increased sales of cars and building materials, and a growing share of residential construction permits issued to builders of single-family homes. Fort Collins and Northern Colorado economic conditions continues to be one of the strongest in the state. The unemployment rate for the Fort Collins-Loveland area is the lowest in the state, consumer spending continues to outpace the rest of the state, and new construction, continues to be strong. Although the general population of Fort Collins is continuing to increase, because of projected changes to the demographics of the general population, the school district expects student enrollment to experience modest increases for the next few years with longer term growth projected along I-25 and the northern portions of the District.

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Budget Impact The primary source of revenue provided to the District is defined on the current provisions of the Colorado Public School Finance Act of 1994, as amended annually. Funding provided from this Act is provided by a combination of local property tax, specific ownership tax primary from vehicle registrations, and state equalization aid. In November 2000, voters approved State Constitutional Amendment 23. Amendment 23 requires K-12 funding to increase by inflation plus 1% from 2001-2011 and by inflation after that. However, because of the past economic downturn and Colorado’s resulting budget challenges, increases that would otherwise be applied as defined under Amendment 23 will not be fully implemented through 2014-15. In June 2014 a lawsuit was filed against the State (Dwyer vs. State of Colorado) with the argument that reductions applied to K-12 funding are unconstitutional under Amendment 23. Colorado’s funding challenges have weighed heavily on all school districts in the state requiring an initial reduction of $382 million below the amount that should be funded to K-12 education for fiscal year 2010-11. In fiscal year 2011-12 the legislature introduced a “negative factor” to Colorado’s School Finance Formula. This “negative factor” quantifies the gap between the amounts that would otherwise be provided under Amendment 23 and the actual amount provided to school districts in Colorado through the School Finance Formula. For fiscal year 2011-12 the “negative factor” or gap in funding grew to $774 million or a reduction of approximately 13%. The “negative factor” further advanced to $1.0 billion for fiscal years 2012-13 and 2013-14. In 2014-15 the State Legislature took action to restore $100 million in funding and thereby reduced the “negative factor” to $894 million. Governor Hickenlooper was re-elected for a second term November 2014 and the State Budget presented by his office will be used to begin budget discussions for the 2015 Legislative Session. The Governor’s budget proposal anticipates further reducing the “negative factor” by another $200 million, however, the budget describes this increase as a one-time adjustment and may not be sustainable beyond 2015-16. For that reason, it is expected that the current gap in funding will remain into the foreseeable future, without a structural change to the State’s budget and how K-12 education is funded in Colorado. In response to the reductions applied to K-12 in the recent past, Poudre School District has implemented budget reductions over the last several years to meet shortfalls in the School Finance Formula. The District is actively monitoring the condition of the State’s budget, which ultimately impacts the majority of revenue available to the District. The District continues a long history of good financial standing and is positioned well to weather future uncertainty that may arise over the next few years. Long-Term Financial Planning/Major Focus Areas District Ends The Board of Education's District Ends Policy (DE 1.0) outlines the overarching goals for the district. The Board of Education created new the new District Ends (adopted June 2014) with input from all community stakeholders including administrators, classified staff, teachers, parents and business leaders. The Superintendent is charged with implementing programs to fulfill these goals and objectives. DE 1.0 outlines PSD's four major goals, which seek to ensure that all students have a well-rounded education that prepares them to succeed in a changing world.

1. Foundations for Success: Colorado Academic Standards/Wellness

2. Success in a changing world: Post-Secondary Readiness

3. Above and Beyond: Individual levels of excellence for students

4. Connections: Academically and Socially connected to the school community These goals (encompassed in DE 1.0) incorporate specific 21st Century Skills the Board and District believe are necessary for students to succeed beyond high school either in a post-secondary institution or in the competitive workforce.

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Through the improvement process, PSD also creates a Unified Improvement Plan each year which outlines areas for improvement and strategies and means by which the district is working to increase student achievement. All current District Unified Improvement Plans (and those for each school) are posted on the Colorado Department of Education's SchoolVIEW webpage for public review. Standards-Based Teaching and Learning Framework The Standards-Based Teaching and Learning Framework Task Force was inspired and motivated to establish a teaching and learning framework that serves all students. A priority was to create a common set of expectations explicitly identifying the roles of students, educators, administrators, and parents/guardians, knowing that the contributions from each of these groups would be integral to the future success of the framework. The Standards-Based Teaching and Learning Framework is the collective effort of multiple stakeholder groups who believe in the value of aligned expectations aiming for the highest levels of organization success. The framework is designed around five primary dimensions: Purpose; Curriculum & Pedagogy; Assessment for Student Learning; Student Engagement; and Classroom Environment & Culture. While these dimensions are universal, the organization of the framework is directly influenced by the work of the Center for Educational Leadership at the University of Washington. In each of the five dimensions, sub-dimension categories provide additional specificity and outline the key characteristics of the dimension. Expectations for students, educators, building administrators, central office support services and parents/guardians are identified within each of these sub-dimensions. Resources to support a deeper understanding of each dimension are included in the Online Toolkit version of the framework, which is accessible to all stakeholders form the District’s website. These resources are designed to provide additional examples of the most successful practices and models from the field in each respective category. A process for maintaining these resources is in place to ensure that this component of the framework is appropriately updated. Assessments and Student Impact The Board of Education is examining the issue of assessments and the impact on students, taking a close look at the time students spend on local, state and national testing, as well as how these assessments and the time they take impact PSD students. The board will talk with staff and community members to discuss potential constructive solutions to this issue that is national in scope. Facilities Planning Process As part of its ongoing work in planning for the future and accounting for growth in the region, PSD updates is Comprehensive Facilities Master Plan every 7 to 10 years. Long-range planning is part of PSD’s work to create positive learning environments for students and staff in every building. The District began the process of updating the Comprehensive Facilities Master Plan, which could take up to 2 years. During this time, the Long Range Planning Workgroup is meeting with members of the Superintendent's Cabinet, Operations directors and staff and outside consultants to conduct the update and make a recommendation to the Superintendent regarding future plans for facilities. The long-range planning process includes review of a variety of areas and synthesis of complex data including:

Larimer County Demographics (i.e. birth rates, building permits, growth patterns) School Capacity Needs/Data Facility Construction, Renovation, Additions Real estate acquisition, trade or sale Intergovernmental Agreements (IGA) Capital construction initiatives School Boundaries (if necessary)

For the current Facilities Master Plan Update, the process includes the following components:

Demographic Study (begun in Fall 2013) School Capacity Study (Elementary and Secondary) – Completed September 2014

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Community Engagement regarding changes to the Comprehensive Facilities Master Plan Final recommendation to the Superintendent and Board of Education (estimated 2015)

Bond and Mill Levy Election in 2010 On November 2, 2010, local voters authorized the District to collect additional property taxes to support operational needs (mill levy override) as well as capital needs (bond issue). The mill levy (Ballot Issue 3A) will provide $16 million annually to meet expenses of the District caused by state revenue cutbacks, including:

Restore a portion of the 139 positions eliminated by state revenue cutbacks and limit class size increases,

Refresh technology and provide technology support for student learning opportunities, Provide skills for workforce development and college readiness to support economic growth, and Increase budget allocations to schools to maintain excellence for student academic achievement and

interventions, and provide resources for preschool, whole child, career awareness and wellness. The bond (Ballot Issue 3B) will provide $120 million for acquiring, improving, equipping and furnishing district buildings and other property, including, but not limited to:

Purchase and install technology in district schools to provide learning opportunities for students, Improve safety and security in district schools and facilities, Maintain and upgrade schools and facilities, including roof replacements; update electrical, plumbing,

fire protection, heating and ventilation systems; and improve school grounds to extend the useful life of facilities.

Sustainability Management Building off the success of applying sustainability in constructing new schools, remodels, and school improvement projects, the district reaffirmed its commitment to sustainability by adopting a Sustainability Management System (SMS) that extends the principles of sustainability to all of its operations. Audit Committee The Board of Education established an Audit Committee within Poudre School District. The primary function of the Audit Committee is to assist the Board of Education in fulfilling its financial oversight responsibilities. Meetings of the Committee occur approximately every other month. Membership of the Committee includes two Board of Education and five community representatives, as well as ad-hoc representatives from the District. Responsibilities and duties of the Committee include overseeing the independent audit; reviewing annual and quarterly financial statements, the systems of internal controls, and financial and compliance reporting processes; providing an open avenue of communication; participating in the planning, evaluation and reporting process of supplemental engagements or procedures; evaluating the efforts of the external auditor; and presenting annually to the Board of Education and management. Based on recommendation from the Audit Committee, the District created an internal audit function. The scope and focus of the internal auditor’s services concerns those activities that may have a direct impact on the District’s compliance with accounting and financial standards, regulations, procedures and policies. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Poudre School District for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013. This was the sixteenth consecutive year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government entity must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

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A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Association of School Business Officials (ASBO) awarded the Certificate of Excellence in Financial Reporting to Poudre School District for the seventeenth consecutive year. We believe that our current comprehensive annual financial report continues to meet the requirements necessary to obtain this certificate, and we are submitting it to the ASBO to determine its eligibility for another certificate. I extend my appreciation to the entire professional accounting staff of the District’s Financial Services Department. The preparation of this report would not have been possible without their dedicated efforts and expertise, not only during the reporting process, but also throughout the year. Appreciation and recognition is also extended to our independent audit firm, CliftonLarsonAllen LLP, and its professional audit staff for the assistance and analysis provided throughout the year. Respectfully submitted, Molly L. Janzen Controller

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Association of School Business Officials International

The Certificate of Excellence in Financial Reporting Award

is presented to

Poudre School District For Its Comprehensive Annual Financial Report (CAFR)

For the Fiscal Year Ended June 30, 2013

The CAFR has been reviewed and met or exceeded ASBO International’s Certificate of Excellence standards

Terrie S. Simmons, RSBA, CSBO John D. Musso, CAE, RSBA President Executive Director

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Poudre School District Organization Chart2013-2014 School Year

6/30/14

Board of Education

Superintendent of SchoolsSandra Smyser, Ph.D.

Assistant Superintendent of Elementary Schools

Todd Lambert, Ph.D.

Asst. Superintendent of Secondary Schools

Edie Eckles

Executive Director of Student Achievement/ Professional

DevelopmentJan Borman

Interim Executive Director of Human Resources Douglas Hartman

Legal & Policy CounselTom Crabb

Elementary Education Student Safety and Discipline Elementary Transportation

Liaison SRO Liaison Charter Schools Choice Policy Feeder Facilitation

Secondary Education Student Safety and Discipline Secondary Transportation

Liaison SRO & CSO Liaison Alternative Education Athletics Choice Policy Feeder Facilitation Security

Accreditation and Assessment Curriculum and Instruction Grants Integrated Services Media Mentoring Professional Development Research and Development Student Services Feeder Facilitation

Benefits Services Licensed Employees Classified Employees Employee Assistance Services

Finance/Budget

Student Information Systems Technical Services/Support Telecom Services Instructional Technology Records Services

Risk Management

Operations Services

Facility Services Child Nutrition Planning, Design & Constr Svc Transportation Services

Communication Services

Purchasing/Materials Mgmt Accounting/Payroll Services

Information Technology

Partnerships and Volunteers Channel 10

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Elected Officials - Board of Education Term Expires

President Thomas Balchak 2015

Vice President Cathy Kipp 2015

Director Christophe Febvre 2017

Director Susan Gutowsky 2015

Director Carolyn Reed 2015

Director Nancy Tellez 2015

Director David Trask 2017

Appointed Officials

Secretary to the Board of Education Tessa Daggett

Treasurer to the Board of Education Molly Janzen

Superintendent's Cabinet

Superintendent of Schools Sandra Smyser

Assistant Superintendent of Elementary Schools Todd Lambert

Assistant Superintendent of Secondary Schools Edie Eckles

Executive Director of Human Resources Douglas Hartman

Executive Director of Student Achievement/Professional Development Jan Borman

Legal & Policy Counsel Tom Crabb

Communications Director Danielle Clark

List of Elected and Appointed OfficialsJune 30, 2014

Poudre School District

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FinancialSectionIndependent Auditors’ Report

Management’s Discussion and Anaylsis

Basic Financial Statements

Required Supplementary Information

Supplementary Information

INDEPENDENT AUDITORS' REPORT Board of Education Poudre School District Fort Collins, Colorado Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Poudre School District, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Liberty Common School, Ridgeview Classical Schools, and Mountain Sage Community School, which represent 100 percent of the assets, net position, and revenues of the discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for Liberty Common School, Ridgeview Classical Schools, and Mountain Sage Community School, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of Liberty Common School, Ridgeview Classical Schools and Mountain Sage Community School were not audited in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

An independent member of Nexia International

 

 

 

CliftonLarsonAllen LLP CLAconnect.com

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Board of Education Poudre School District We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions

In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Poudre School District as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 15-28 and 71-77 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Poudre School District’s basic financial statements. The combining and individual fund financial statements and schedules and the Auditor's Electronic Financial Data Integrity Check Figures as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and the Auditor's Electronic Financial Data Integrity Check Figures are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules and the Auditor's Electronic Financial Data Integrity Check Figures is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Board of Education Poudre School District The introductory and statistical sections listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 3, 2014, on our consideration of Poudre School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Poudre School District’s internal control over financial reporting and compliance.

a CliftonLarsonAllen LLP

Broomfield, Colorado December 3, 2014

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Management’sDiscussion andAnalysisThe Management’s Discussion and Analy-sis (MD&A) Section of this document is acomponent of required supplementary infor-mation used to introduce the basic financialstatements and provide an analytical over-view of the District’s financial activities.

This section of the District’s Comprehensive Annual Financial Report offers readers of the District’s financial statements a narrative overview and analysis of the financial activities of Poudre School District for the fiscal year ended June 30, 2014. Information in the Management’s Discussion and Analysis is focused on the primary government unless specifically noted. We encourage readers to consider the information presented here in conjunction with additional information furnished by the letter of transmittal at the beginning of this report and the District’s financial statements, which follow this section. Financial Highlights

• The District’s overall financial status improved over the course of the 2014 fiscal year. Total net position increased 2.2%, with net position related to governmental activities increasing 2.4% and net position related to business-type activities decreasing 12.2%. Approximately $59 million of net position is unrestricted and may be used to meet the District’s ongoing responsibility for its educational program for students.

• Overall revenues were $289.4 million, approximately $3.4 million more than expenses. The

$285.8 million cost of basic programs is offset by revenues from charges for services, grants and contributions, resulting in a net cost of approximately $235.3 million. General revenues, primarily property taxes and state equalization payments, account for approximately $238.9 million or 83% of all revenues.

• Business-type activities resulted in a decrease in net position from the prior year in the

amount of $296,413; revenue in the Food Service Fund from charges for services and operating grants and contributions was not sufficient to cover expenses in the 2014 fiscal year. Lunch prices have been adjusted for the 2015 fiscal year; the projected increase in revenue is expected to meet anticipated costs.

• Outlays for capital assets are associated primarily with expending bond proceeds received

related to a successful bond election in November 2010. This election provided authorization for the District to issue $120 million in general obligation bonds for the purpose of acquiring, improving, equipping and furnishing District buildings and other property of which $60 million were issued during the 2011 fiscal year and $30 million were issued during the 2013 fiscal year.

• The District decreased its outstanding long-term debt approximately $19.3 million, or 7.9%.

This decrease resulted from payments of scheduled principal on general obligation bonds.

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Overview of the Financial Statements This annual report consists of four parts: Management’s Discussion and Analysis (this section), the Basic Financial Statements, Required Supplementary Information and Supplementary Information. The Basic Financial Statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements, which provide additional and more detailed information. Included as Required Supplementary Information is budget-to-actual information related to the District’s General Fund as well as the District’s Designated Special Purpose Grants Fund and Public School Activities Fund, major Special Revenue Funds. The Supplementary Information section contains budget-to-actual information for all other District funds (as required by state law), as well as additional information that further explains and supports the financial statements, including combining schedules. Detailed in the following diagram are how the various parts of this annual report are arranged and related to one another.

Table 1 Organization of Poudre School District Comprehensive Annual Financial Report

Table 2, displayed on the following page, summarizes the major features of the District’s financial statements, including the portion of the District’s activities covered and the types of information contained in them. The remainder of this overview section of Management’s Discussion and Analysis highlights the structure and contents of each of the two types of financial statements, government-wide and fund, found in the basic financial statements.

Management’s Discussion and

Analysis

Basic Financial

Statements

Required Supplementary

Information

Supplementary Information

Government-Wide Financial

Statements

Fund Financial

Statements

Notes to Basic Financial

Statements

Summary Detail

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Government-WideStatements Governmental Funds Proprietary Funds Fiduciary Funds

Scope Entire District The activities of the Activities the District Instances in which(except fiduciary District that are not operates similar to the District administersfund) proprietary or fiduciary, private businesses: resources on behalf

such as instruction, food services in Poudre of someone else,administration, and School District such as scholarshipsupport services programs

Required Statement of Balance Sheet Statement of Net Position Statement of Fiduciaryfinancial Net Position Net Positionstatements Statement of Revenues, Statement of Revenues,

Statement of Expenditures, and Expenses and Changes Statement of ChangesActivities Changes in Fund in Net Position in Fiduciary Net Position

BalancesStatement of CashFlows

Accounting Accrual accounting Modified accrual Accrual accounting Accrual accountingbasis and and economic accounting and current and economic and economicmeasurement resources focus financial focus resources focus resources focusfocusType of asset/ All assets, deferred Generally assets and All assets, deferred All assets, deferreddeferred outflows outflows of resources, deferred outflows of outflows of resources, outflows of resourcesof resources/ liabilities and resources expected to liabilities and (if any), liabilities andliability/deferred deferred inflows of be used up and liabilities deferred inflows of deferred inflows ofinflows of resources, both and deferred inflows of resources, both resources (if any), bothresources financial and capital, resources that come due financial and capital, short-term and long-term;information short-term and or available during the short-term and funds do not currently

long-term year or soon thereafter; long-term contain capital assets,no capital assets or although they maylong-term liabilitiesincluded

Type of inflow/ All revenues and Revenues for which All revenues and All additions and outflow expenses during cash is received during expenses during the deductions during theinformation year, regardless of or soon after the end year, regardless of year, regardless of

when cash is of the year; when cash is received when cash is receivedreceived or paid expenditures when or paid or paid

goods or serviceshave been receivedand the relatedliability is due and payable

Fund Financial Statements

Table 2Major Features of the Government-Wide and Fund Financial Statements

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Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Poudre School District’s finances in a manner similar to a private-sector business. These statements provide both short-term and long-term information about the District’s overall financial status. The statement of net position presents information on all of the District’s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Poudre School District is improving or deteriorating. To assess the District’s overall health, additional non-financial factors, such as the condition of school buildings and other facilities, need to be considered. The statement of activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). Included in governmental activities are most of the District’s basic services such as regular and special education, transportation and administration. The only services accounted for as business-type activities are the District’s food services. The government-wide financial statements include not only financial data for Poudre School District itself (known as the primary government), but also component units of the school district, which consists of two charter schools (discretely presented component units). A component unit is a legally separate entity from the District, but an entity, which has significant operational and/or financial relationships with the District. The basic government-wide financial statements can be found on pages 29-30 of this report. Fund Financial Statements The fund financial statements provide more detailed information about the District’s funds, focusing on its most significant or “major” funds, not on the District as a whole. Funds are accounting devices the District uses to track specific sources of funding and spending on particular programs. Some funds are required by state law and bond covenants. Other funds control and manage money for particular purposes (such as repaying its long-term debt) or to demonstrate proper expenditure of certain revenues (such as federal grants). The District’s funds are divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds: Most of the District’s basic services are included in governmental funds, which generally focus on (1) inflows and outflows of cash and other financial assets, and (2) balances remaining at year end which are available for spending. Consequently, the governmental fund statements provide a detailed short-term view to help determine financial resources that may be available in the near term to finance the District’s programs. Because this information does not encompass the long-term focus of the government-wide statements, a reconciling schedule follows the governmental fund statements explaining the relationship (or differences) between them.

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Poudre School District maintains five individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for all five governmental funds: General Fund, Debt Service Fund, Capital Projects Fund, Designated Special Purpose Grants Fund, and Public School Activities Fund, all of which are considered to be major funds. Budget-to-actual information for the General Fund and major Special Revenue Funds (Designated Special Purpose Grants Fund and Public School Activities Fund) is included in the Required Supplementary Information section. Also included in the Supplementary Information section is budget-to-actual information for the Debt Service Fund and Capital Projects Fund as required by state law. The basic governmental fund financial statements can be found on pages 31 and 33 of this report. Proprietary Funds: Poudre School District maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Internal service funds account for the financing of goods or services primarily internally (to other departments and/or employees of the District) although some goods or services are provided to others on a cost-reimbursement basis. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The District currently has one enterprise fund which accounts for food services activities. The proprietary fund financial statements provide separate information for the enterprise fund, which is considered by the District to be a major fund. Included in the Supplementary Information section is budget-to-actual information for the Food Service Fund as required by state law. Poudre School District uses internal service funds to report activities that primarily provide supplies and services for its other programs and activities. The District currently has two internal service funds: the Warehouse Fund and the Employee Self-Insurance Fund. Since these funds are used to account for the financing of goods or services provided by one department to other departments or employees of the District, or to others, on a cost-reimbursement basis, many of the expenditures in these funds are duplicated in other District funds (for example, costs charged for employee health and dental benefits in other funds are recorded as revenue in the Employee Self-Insurance Fund). The expenses for health and dental claims charged in the Employee Self-Insurance Fund using this revenue are then overstating overall expenditures by this amount. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Supplementary Information section of this report. Because all of these funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The basic proprietary fund statements can be found on pages 35-37 of this report. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The District currently has one fiduciary fund, the Private-Purpose Trust Fund. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The Private-Purpose Trust Fund is used primarily to account for scholarship activity. Included in the Supplementary Information section is budget-to-actual information for the Private-Purpose Trust Fund as required by state law. The basic fiduciary fund statements can be found on pages 38-39 of this report.

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Component Units: A statement of net position and statement of activities for the discretely presented component units (charter schools) has been provided in this section. The component units have been included to provide more complete information regarding public school activities within the District. Each component unit has a separately issued financial statement available. The basic discretely presented component unit statements can be found on pages 40-41 of this report. Notes to Basic Financial Statements The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 42-70 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information (General Fund and major Special Revenue Funds budget-to-actual schedules) and supplementary information. Supplementary information includes the combining statements mentioned earlier in connection with internal service funds, as well as budget-to-actual information for all funds (other than for the General Fund and major Special Revenue Funds, which are included as required supplementary information) as dictated by state law. Financial Analysis of the District as a Whole Net Position and Changes in Net Position

TotalPercentage

Change2013 (restated) 2014 2013 2014 2013 (restated) 2014 2013-2014

Current and other assets $ 180,631,177 $ 164,065,013 $ 2,374,770 $ 2,095,860 $ 183,005,947 $ 166,160,873 (9.2%)Capital assets, net 249,719,469 252,953,722 428,894 431,892 250,148,363 253,385,614 1.3%

Total assets 430,350,646 417,018,735 2,803,664 2,527,752 433,154,310 419,546,487 (3.1%)

Unamortized deferred chargeson debt refunding 2,604,732 1,650,747 — — 2,604,732 1,650,747 (36.6%)

Total deferred outflowsof resources 2,604,732 1,650,747 — — 2,604,732 1,650,747 (36.6%)

Long-term liabilities outstanding 243,913,704 224,640,882 16,809 14,390 243,930,513 224,655,272 (7.9%)Other liabilities 33,523,279 34,787,909 354,968 377,888 33,878,247 35,165,797 3.8%

Total liabilities 277,436,983 259,428,791 371,777 392,278 277,808,760 259,821,069 (6.5%)

Net positionNet investment in

capital assets 45,419,623 50,986,099 428,894 431,892 45,848,517 51,417,991 12.1%Restricted 50,722,325 50,899,116 — — 50,722,325 50,899,116 0.3%Unrestricted 59,376,447 57,355,476 2,002,993 1,703,582 61,379,440 59,059,058 (3.8%)

Net position atend of year,as restated 155,518,395 159,240,691 2,431,887 2,135,474 157,950,282 161,376,165 2.2%

Net position atbeginning of year,as restated 152,371,156 155,518,395 2,587,487 2,431,887 154,958,643 157,950,282 1.9%

Amount of increase/(decrease) $ 3,147,239 $ 3,722,296 $ (155,600) $ (296,413) $ 2,991,639 $ 3,425,883

Percent of increase/(decrease) 2.1% 2.4% (6.0%) (12.2%) 1.9% 2.2%

Business-type Activities Total School District

Table 3Condensed Statement of Net Position

Governmental Activities

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Net investment in capital assets represents the cost of the assets (net of accumulated depreciation) less debt applicable to those assets. Debt attributable to unspent bond proceeds is included in restricted net position. The District uses capital assets to provide services to students. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The District’s combined net position was larger on June 30, 2014, than it was the year before, increasing 2.2% to $161,376,165. This increase in the District’s financial position came from its governmental activities, the net position of which grew 2.4% to $159,240,691. The net position of the District’s business-type activities (food services) decreased $296,413, which represents a decrease of 12.2%. Table 3 provides a summary of the District’s net position at June 30, 2014. At the end of the 2014 fiscal year, District net position reflects positive balances in all three categories - the District as a whole, as well as its separate governmental and business-type activities. Table 4 provides a summary of the changes in net position. Following Table 4 is specific discussion related to overall revenues and expenses.

TotalPercentage

Change2013 (restated) 2014 2013 2014 2013 (restated) 2014 2013-2014

RevenuesProgram revenues

Charges for services $ 10,026,160 $ 11,017,809 $ 3,019,987 $ 3,276,336 $ 13,046,147 $ 14,294,145 9.6%Operating grants and

contributions 27,650,787 29,709,776 4,471,983 4,515,813 32,122,770 34,225,589 6.5%Capital grants/restricted

investment earnings 1,597,564 1,956,610 — — 1,597,564 1,956,610 22.5%General revenues

Property taxes 128,253,445 127,400,081 — — 128,253,445 127,400,081 (0.7%)Equalization 94,217,158 99,266,299 — — 94,217,158 99,266,299 5.4%Other 10,701,431 12,228,743 26,407 2,971 10,727,838 12,231,714 14.0%

Total revenues 272,446,545 281,579,318 7,518,377 7,795,120 279,964,922 289,374,438 3.4%

ExpensesInstruction 146,165,952 146,846,816 — — 146,165,952 146,846,816 0.5%Support services:

Students 14,975,448 15,772,945 — — 14,975,448 15,772,945 5.3%Instructional staff 16,134,084 17,782,490 — — 16,134,084 17,782,490 10.2%General administration 2,645,082 2,798,230 — — 2,645,082 2,798,230 5.8%School administration 15,621,363 16,296,488 — — 15,621,363 16,296,488 4.3%Business 2,126,703 2,361,811 — — 2,126,703 2,361,811 11.1%Operations and

maintenance of plant 21,916,989 22,613,583 — — 21,916,989 22,613,583 3.2%Student transportation 6,854,130 7,257,434 — — 6,854,130 7,257,434 5.9%Central 13,774,881 17,686,921 — — 13,774,881 17,686,921 28.4%Other 198,910 175,346 — — 198,910 175,346 (11.8%)

Food service operations 139,829 56,328 7,673,977 8,091,533 7,813,806 8,147,861 4.3%Other 3,427,451 3,144,226 — — 3,427,451 3,144,226 (8.3%)Debt service 13,535,274 11,182,079 — — 13,535,274 11,182,079 (17.4%)Charter school funding 11,783,210 13,694,681 — — 11,783,210 13,694,681 16.2%

Total expenses 269,299,306 277,669,378 7,673,977 8,091,533 276,973,283 285,760,911 3.2%

Change in net position 3,147,239 3,909,940 (155,600) (296,413) 2,991,639 3,613,527 20.8%

Extraordinary loss — (187,644) — — — (187,644) N/A

Net position beginning of year,as restated 152,371,156 155,518,395 2,587,487 2,431,887 154,958,643 157,950,282 1.9%

Net position end of year,as restated $ 155,518,395 $ 159,240,691 $ 2,431,887 $ 2,135,474 $ 157,950,282 $ 161,376,165 2.2%

Governmental Activities Business-type Activities Total School District

Table 4Changes in Net Position

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Property taxes and per pupil state formula revenue (state equalization) account for most of the District’s revenue, contributing about 44 cents and 34 cents respectively of every dollar raised (see Table 5). These revenues directly relate to the level of District enrollment. Another 12% came from grants and contributions, and the remainder came from fees charged for services and other miscellaneous sources. The District’s expenses predominantly relate to instruction and support services, which include support for students and instructional staff, administration, operations and maintenance, and transportation. Given that Poudre School District is a service organization providing education services to students, the majority of the expenses are paid in the form of compensation (salaries and benefits) to the District’s employees. Detailed below in Tables 5 and 6 are charts displaying revenues by source and expenses by program for the total school district.

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Governmental Activities The increase in net position for governmental activities in the 2014 fiscal year was approximately $3.7 million. Primary key elements of the increase in net position for governmental activities are as follows:

• The cost of all governmental activities in the 2014 fiscal year was $277.7 million.

• Users of the District’s programs financed some of the costs ($11.0 million). Revenues in this category include items such as athletic fees; tuition for all-day kindergarten; and building rental income.

• Federal and state governmental grants, contributions by local governments, businesses and

individuals and student fundraising profits subsidized certain programs amounting to $29.7 million.

• District and state taxpayers financed most of the District’s costs, with revenue from taxes

(property taxes and specific ownership taxes) approximately $137.7 million and state per-pupil formula revenue (Equalization) approximately $99.3 million.

• Capital grants increased 22.5% from the 2013 to the 2014 fiscal year. This increase relates

to revenue collected as a result of land dedication agreements with Larimer County, the City of Fort Collins, the Town of Windsor, and the Town of Wellington. As allowed by Colorado state statute, per these agreements, developers are required to either dedicate a portion of land to school districts for the development of new schools or pay a fee in lieu of land dedication. This revenue is used for the purposes of school site acquisition, expansion or development, or for capital facilities planning.

• Significant increases in expenses between the 2013 and the 2014 fiscal year occurred in the

following programs/categories: instructional staff, business, central and charter school funding. The increases in the instructional staff, business, and central programs were a result of funding staffing related to District and Board of Education priorities such as curriculum teachers on special assignment, mental health staff and staff to offset workload related to implementation of Senate Bill 10-191. Senate Bill 10-191 changes the way all educators (principals/assistant principals, teachers and specialized service providers) will be evaluated in Colorado with the ultimate goal of continuously supporting educators’ professional growth and, in turn, accelerating student results. The increase in charter school funding is a result of a new charter school, Mountain Sage Community School, authorized by Poudre School District opening in the fall of 2013.

• The debt service expenses for 2013 have been adjusted to reflect the write off of debt

issuance costs in accordance with GASB Statement No. 65, Items Previously Reported as Assets and Liabilities in the amount of $1,636,038. This and the reduction of bond principal are the primary explanations for the decrease in debt service expenses between the 2013 and the 2014 fiscal year.

• The District’s financial position is the product of several financial transactions including the

net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The moderate increase in net position is indicative of the District’s financial stability.

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Business-Type Activities Revenues of the District’s business-type activities were not sufficient to cover expenses, resulting in a decrease in net position of $296,413. After three consecutive years of increases in net position, this is the first year in which the business-type activities resulted in a decrease. Business-type activities receive no support from tax revenue. Each year, lunch prices are evaluated and, if necessary, adjusted to respond to anticipated increases in cost. Lunch prices have been increased for the 2014-15 school year. Financial Analysis of the District’s Funds Governmental Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal, federal and state requirements. The focus of the governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. The actual impacts for the 2014 fiscal year to the fund balances of the District’s governmental funds were fairly consistent with anticipated results for the year, with the spending of bond proceeds received in prior fiscal years the primary reason for the overall decrease in fund balances of the District’s governmental funds of approximately $16.2 million. In addition to the decrease in fund balance in the Capital Projects fund as explained above, fund balances of two other governmental funds decreased from the 2013 fiscal year. In one of these funds, the Debt Service Fund, the decrease is consistent with the amount of fund balance budgeted to be used in the fiscal year, approximately $1.8 million. The other fund, the Public School Activities Fund, experienced a slight decrease of approximately $300,000. While the budget for the 2014 fiscal year did not reflect an anticipated decrease, the increase anticipated was only $220,000. This fund is used primarily to record the financial transactions related to school-sponsored activities generally supported by donations/contributions and fundraising that occur one time in nature; therefore, since the funds are not used for ongoing operations, the decrease, although unanticipated, is not necessarily indicative of decreases in future years. The District’s General Fund experienced an increase in fund balance from the 2013 fiscal year of approximately $1.8 million. In the General Fund Budgetary Highlights section of this Management’s Discussion and Analysis, details regarding the components of the General Fund’s fund balance are available. Proprietary Funds Poudre School District’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position in the Food Service Fund was approximately $1.7 million at June 30, 2014, a decrease in net position of $296,413. As explained earlier in the discussion related to business-type activities, lunch prices have been increased for the 2014-15 school year; therefore, the District does not anticipate any significant limitation on the future use of fund resources. Both of the District’s internal service funds experienced decreases in net position from the 2013 fiscal year. Although the budget for the Warehouse Fund did not reflect an anticipated decrease, the increase reflected in the budget was only $600. The sales amounts received in this fund are designed to cover the cost of goods sold; therefore, the moderate decrease of approximately $30,000 does not create concerns about the stability of this fund. Sales prices are adjusted continually based on the actual cost of inventory items.

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The other internal service fund, The Employee Self-Insurance Fund, experienced a decrease of approximately $1.3 million. Health and dental rates were not increased for the 2014 fiscal year based on relatively stable costs projected for the plan and evaluation of the healthy net position in the fund. Based on a review of the first six months’ expenditures in the 2014 fiscal year, costs in the fund did not increase at the level originally anticipated. At that time, the net position was determined by the District to be at a level sufficient to allow a one-time benefit rebate for employees currently enrolled in the District’s medical plans. Subsequently, the amounts budgeted to be contributed to the health plan for January and February 2014 were instead provided to employees as salary. The two-month lapse in employer contributions to this fund were incorporated into the final 2014 budget for the Employee Self-Insurance Fund. The actual decrease of $1.3 million was less than the anticipated decrease of $2.1 million. General Fund Budgetary Highlights The actual net change in the non-GAAP budgetary basis fund balance of the District’s General Fund for the 2014 fiscal year was $2,327,869. This change combined with the extraordinary loss recorded by the District of $187,644 resulted in an ending budgetary basis fund balance of $66,299,022. The 2014 fiscal year budget was adopted in June 2013, with a revised (final) budget adopted in January 2014. The budgets for the District’s General Fund for the 2014 fiscal year included assumptions related to key factors such as inflation, funded pupil count, and increases to employee compensation as a result of the annual Negotiations process. There was an increase of $1,175,448 in appropriations between the original and final budget. Main components of the increase related to changes in anticipated per-pupil funding, estimated funded pupil count (FPC), and inclusion of projected flood-related costs and insurance reimbursements. The projected fund balance presented in the final budget was approximately $64.6 million, approximately $1.7 million lower than actual results for the fiscal year. In the final adopted budget, the District anticipated a slight increase in fund balance of approximately $400,000. Actual General Fund revenue and other financing sources that occurred during the 2014 fiscal year was $224.3 million and actual expenditures and other financing uses on a budgetary basis were approximately $221.9 million. In most instances, actual expenditures and revenues were fairly consistent with budgeted amounts. The primary reason for the increase in fund balance beyond what was expected was a delay in approved technology purchases. The District had actually approved the use of fund balance for one-time technology purchases in the spring of 2014 in addition to the budgeted amount for technology expenditures and would have shown a decrease in fund balance between 2012-13 and 13-14 if this delay had not occurred. Significant expenditure variances occurred in both the operation and maintenance of plant category as well as central support services. The significant expenditure variance in operation and maintenance of plant occurred as a result of funding in the 2014 fiscal year one-time capital projects through fund balance assigned for this purpose at June 30, 2013. Central support services expenditures were a result of increasing and shifting staffing to this category related to District and Board of Education priorities such as curriculum teachers on special assignment, mental health staff and staff to offset workload related to implementation of Senate Bill 10-191. Senate Bill 10-191 changes the way all educators (principals/assistant principals, teachers and specialized service providers) will be evaluated in Colorado with the ultimate goal of continuously supporting educators’ professional growth and, in turn, accelerating student results. The District updated Policy DBAA – General Fund Balances in June 2014. This policy addresses the following in regards to the fund balances of the District’s General Fund: fund balance categories and definitions, prioritization of fund balance usage, target level/replenishing shortages/and using excess in relation to unassigned fund balance, as well as implementation guidelines and policy review. This policy states that the District shall strive to maintain an appropriated reserve amount in its General Fund within the range of 3% to 5% of each fiscal year’s expenditures and other financing uses. This reserve amount is intended to safeguard against unanticipated expenditures and/or unrealized revenues, as well as to help maintain a high credit rating for the District and reduce the need for short-term borrowing. In addition to this established reserve within the unassigned fund balance category, the Board also authorized a

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contingency reserve of 3% of General Fund expenditures and other financing uses through their annual budget resolution process. The difference between the District’s GAAP and non-GAAP fund balance is $11,723,893. This amount relates to compensation earned at June 30, 2014, but not paid until July 2014. In the budgetary basis fund balance, this amount is represented as assigned fund balance. The remainder of the District’s fund balance (GAAP basis fund balance) is classified into non-spendable of $150,352, restricted of $12,429,706, assigned of $26,280,103, and unassigned of $15,714,968. Unassigned fund balance in the District’s General Fund represents approximately 7% of budgetary basis expenditures and other financing uses. The ending unassigned fund balance is within the established range identified in Policy DBAA – General Fund Balances of 6% to 8% (3% to 5% appropriated reserve plus 3% Board-approved contingency reserve). Capital Assets By the end of fiscal year 2014, the District had invested $253.4 million in a broad range of capital assets, including land, intangible assets (water rights and computer software), buildings, site improvements, vehicles and other equipment. (See Table 7.) This amount represents a net increase of approximately $3.3 million, or 1.3% from last year. (More detailed information about capital assets can be found in Note 6 to the basic financial statements.) Total depreciation expense for the year was approximately $10.8 million, while increases to capital assets amounted to approximately $14.0 million.

Total Percentage

Change2013 2014 2013 2014 2013 2014 2013-2014

Land $ 19,570,177 $ 19,570,177 $ — $ — $ 19,570,177 $ 19,570,177 0.0%Construction in progress 8,479,649 5,741,257 8,479,649 5,741,257 (32.3%)Water rights 1,005,895 1,007,451 — — 1,005,895 1,007,451 0.2%Buildings 207,933,787 213,212,059 — — 207,933,787 213,212,059 2.5%Site improvements 6,124,553 5,762,008 — — 6,124,553 5,762,008 (5.9%)Vehicles 2,161,064 2,446,114 — — 2,161,064 2,446,114 13.2%Software — 688,703 — — — 688,703 N/AOther equipment 4,444,344 4,525,953 428,894 431,892 4,873,238 4,957,845 1.7%

$ 249,719,469 $ 252,953,722 $ 428,894 $ 431,892 $ 250,148,363 $ 253,385,614 1.3%

TotalGovernmental

ActivitiesBusiness-type

Activities

Table 7Capital Assets (net of depreciation)

Long-Term Liabilities At year-end, the District had approximately $224.7 million in long-term liabilities outstanding, a decrease of 7.9% from last year, as shown below in Table 8. More detailed information about the District’s long-term liabilities is presented in Note 7 to the basic financial statements.

TotalPercentage

Change2013 2014 2013-2014

Governmental Activities:Bonds payable $ 242,921,446 $ 223,611,411 (7.9%)Compensated absences 992,258 1,029,471 3.8%

Business-type Activities:Compensated absences 16,809 14,390 (14.4%)

Total $ 243,930,513 $ 224,655,272 (7.9%)

Total School District

Table 8Outstanding Long-Term Liabilities

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The bond election held in November 2010 authorized the District to issue $120 million in general obligation bonds of which $60 million was issued during the 2011 fiscal year and $30 million was issued during the 2013 fiscal year. Colorado Revised Statute (C.R.S.) 22-42-104 states that a school district shall have a limit of bonded indebtedness determined by a specified formula. The District’s outstanding debt is below the limit. See Table XI in the Statistical Section of this document for detailed computations associated with the limit. The District maintains an “Aa3” rating from Moody’s and an “AA” from Fitch for general obligation debt. Factors Bearing on the District’s Future At the time these financial statements were prepared and audited, the District was aware of the following existing circumstances that could significantly affect its financial health in the future.

Fluctuations in student enrollment directly impact the financial resources the District uses to

operate since the primary source of revenue is per pupil funding. District K-12 enrollment has been relatively stable for the past five years, with only modest increases in the past few years. The District is again anticipating slight enrollment growth for the 2014-15 school year. The growth is attributable to a number of factors, particularly the economy and the cost of housing within the District. Additionally, enrollment data indicates that enrollment growth in the next several years will be minimal in relation to the growth experienced during the 90’s.

Under state law, the District may contract with individuals and organizations for the operation of

schools, referred to as “charter schools,” within the District. For purposes of the Public School Finance Act, pupils enrolled in a charter school in the District are included in the pupil enrollment of the District. Such charter schools are financed in part from a portion of the District’s revenues received under the Public School Finance Act. The District is required to pay a charter school a certain percentage of per pupil revenues for each pupil enrolled in such charter school, less certain central administrative costs. The addition of new charter schools or expansion of existing charter schools could impact the District’s finances. A new charter school, Fort Collins Montessori School, has been approved by the District’s Board of Education and is planning on opening in fall 2014 (see Note 15 for more information regarding this charter school).

The District continues to monitor the State’s financial status. Colorado’s economy continues to strengthen, and the Governor’s budget proposal incorporates additional funding for schools to reduce the “negative factor” used in recent years in calculating funding for Colorado school districts. This “negative factor” quantifies the gap between the amounts that would otherwise be provided under Amendment 23 and the actual amount provided to Colorado school districts in Colorado through the School Finance Formula. Although this is positive news for the District, at this time it is described as a one-time adjustment that may not be sustainable. Actual economic reports and forecasts will be reviewed throughout the year to assist in determining potential impacts to funding of school districts which is approximately 43% of the State’s budget.

As part of its ongoing work in planning for the future and accounting for growth in the region, the District updates its Comprehensive Facilities Master Plan every 7 to 10 years. The most recent plan published covered the years from 2007 to 2017. The process of updating this plan has started. The long-range planning process includes review of a variety of areas and synthesis of complex data including: demographics, school capacity needs/data, condition of facilities, etc. It is anticipated that the process for updating the plan could take up to two years. As details begin to emerge related to facility’s needs, the District will be proactive in planning financially for those needs.

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Colorado’s public school finance laws are subject to review and examination through the judicial process, and are subject to legislative changes as well. Appropriation decisions regarding the State’s share of Total Program Funding are made on an annual basis by the State legislature. It is possible that the General Assembly may cut public school funding as part of overall State spending cuts in the future. As a result, the District cannot anticipate with certainty all of the factors which may influence the financing of its future activities. There is no assurance that there will not be any change in, interpretation of, or addition to the applicable laws (including but not limited to the School Finance Act), provisions, and regulations which would have a material effect, directly or indirectly, on the affairs of the District.

The Public Employees’ Retirement Association (PERA) of Colorado, the pension plan that covers

all District employees, will continue increasing employer contribution rates by 0.9 percent per year culminating in a rate of 20.15% by January 2018. The increase in contribution rates was enacted by the state legislature and the PERA Board in order to increase pension plan funding levels in relation to actuarial calculations. The annual increased costs will impact the District financially, and the District will need to consider the increase in annual budgets.

Rising nationwide healthcare costs are a consideration as the District evaluates the benefits provided to employees. The District is cautious about how to manage increases in benefits costs that significantly exceed the increases in revenues from year to year. The District’s Benefits Committee will continue to meet to discuss, analyze and recommend the level of benefits being offered to employees.

The nation’s economic situation continues to be a factor in the financial outlook of the District as it

relates to federal funding resources. The District will continue to monitor potential impacts and incorporate anticipated changes into future years’ operations.

In regard to the above-mentioned factors, preparation for the 2016 fiscal year budget has begun. Contacting the District’s Financial Management This financial report is designed to provide the District’s citizens, taxpayers, customers and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. Questions about this report or requests for additional financial information should be directed to the Office of the Controller, Poudre School District, 2407 LaPorte Avenue, Fort Collins, CO 80521. Complete financial statements for each component unit (charter school) are available at each school’s administrative office.

Liberty Common School Ridgeview Classical Schools Mountain Sage Community School 1725 Sharp Point Dr 1800 S Lemay 2310 East Prospect Rd, Suite A Fort Collins, CO 80525 Fort Collins, CO 80525 Fort Collins, CO 80525

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BasicFinancialStatementsFinancial statements presented in thissection comprise the minimum combinationof financial statements and note disclosuresrequired for fair presentation in conformitywith GAAP.

DiscretelyPresented

Governmental Business-type ComponentActivities Activities Total Units

ASSETSCash and investments (including restricted amounts) $ 153,029,243 $ 1,277,799 $ 154,307,042 $ 10,852,373

1,391,424 — 1,391,424 — 4,526,506 457,544 4,984,050 — 1,035,953 9,896 1,045,849 123,922

— — — 98,545 150,352 — 150,352 63,031

Prepaid deposits 64,402 — 64,402 — Inventory 365,615 350,621 716,236 —

3,501,518 — 3,501,518 — Land 19,570,177 — 19,570,177 2,313,455 Water rights 1,007,451 — 1,007,451 12,864 Construction in progress 5,741,257 — 5,741,257 2,059,253

Buildings and site improvements 218,974,067 — 218,974,067 15,411,047 Vehicles 2,446,114 — 2,446,114 42,533 Software 688,703 — 688,703 Other equipment 4,525,953 431,892 4,957,845 531,188

Total assets 417,018,735 2,527,752 419,546,487 31,508,211

DEFERRED OUTFLOWS OF RESOURCESUnamortized deferred charges on debt refunding 1,650,747 — 1,650,747 235,249

LIABILITIESAccounts payable 14,549,822 211,304 14,761,126 208,488

98,545 — 98,545 — 13,018,640 166,584 13,185,224 687,387

Accrued interest 1,098,605 — 1,098,605 197,547 Estimated liability for unsubmitted claims 5,587,033 — 5,587,033 —

287,141 — 287,141 — Unearned revenue 148,123 — 148,123 103,490 Noncurrent liabilities:

Due within one year 18,077,280 — 18,077,280 343,694 206,563,602 14,390 206,577,992 22,954,203

Total liabilities 259,428,791 392,278 259,821,069 24,494,809

DEFERRED INFLOWS OF RESOURCESUnamortized deferred gain on debt refunding — — — 73,097

NET POSITIONNet investment in capital assets 50,986,099 431,892 51,417,991 (3,000,654) Restricted for:

Debt service 33,235,654 — 33,235,654 1,449,314 TABOR 7,400,000 — 7,400,000 454,916 School site acquisition, expansion and development 5,029,706 — 5,029,706 — Construction/repair and replacement of facility — — — 3,210,881 Public school activities 5,183,133 — 5,183,133 — Payment of claims 50,623 — 50,623 —

Unrestricted 57,355,476 1,703,582 59,059,058 5,061,097

Total net position $ 159,240,691 $ 2,135,474 $ 161,376,165 $ 7,175,554

The accompanying notes are an integral part of the basic financial statements.

Primary Government

Poudre School DistrictGovernment-Wide Statement of Net Position

June 30, 2014

Cash with Larimer County TreasurerReceivable from grantor agenciesAccounts receivableDue from primary government

Property taxes receivable

Prepaid expense

Due in more than one year

Other capital assets, net of accumulated depreciation:

Due to component unitsAccrued salaries and benefits

Retirement severance payable

29

Capital Grants/Operating Restricted

Charges for Grants and Investment Governmental Business-type ComponentActivities: Expenses Services Contributions Earnings Activities Activities Total UnitsPrimary government:

Governmental activities:Instruction $ 146,846,816 $ 3,609,196 $ 20,270,693 $ — $ (122,966,927) $ — $ (122,966,927) Support services:

Students 15,772,945 — 3,049,818 — (12,723,127) — (12,723,127) Instructional staff 17,782,490 — 2,291,101 — (15,491,389) — (15,491,389) General administration 2,798,230 393,732 9,046 — (2,395,452) — (2,395,452) School administration 16,296,488 — 98,773 — (16,197,715) — (16,197,715) Business 2,361,805 122,377 558,579 — (1,680,849) — (1,680,849) Operations and maintenance of plant 22,613,583 — 335,366 (22,278,217) — (22,278,217) Student transportation 7,257,434 90,639 1,779,096 — (5,387,699) — (5,387,699) Central 17,686,921 6,637,141 27,301 — (11,022,479) — (11,022,479) Other 175,346 — — — (175,346) — (175,346)

Food services operations 56,328 — 493 — (55,835) — (55,835) Community services 417,948 164,724 247,156 — (6,068) — (6,068) Education for adults 41,784 — — — (41,784) — (41,784) Facilities acquisition and construction 1,416,868 — — 1,956,610 539,742 — 539,742 Unallocated depreciation, excludes

direct depreciation expenses of programs 1,267,626 — — — (1,267,626) — (1,267,626) Debt service 11,182,085 — 1,042,354 — (10,139,731) — (10,139,731) Charter school funding 13,694,681 — — — (13,694,681) — (13,694,681)

Total governmental activities 277,669,378 11,017,809 29,709,776 1,956,610 (234,985,183) — (234,985,183)

Business-type Activities:Food services 8,091,533 3,276,336 4,515,813 — — (299,384) (299,384)

Total business-type activities 8,091,533 3,276,336 4,515,813 — — (299,384) (299,384)

Total primary government $ 285,760,911 $ 14,294,145 $ 34,225,589 $ 1,956,610 $ (234,985,183) $ (299,384) $ (235,284,567)

Component units $ 17,129,039 $ 2,768,382 $ 454,442 $ — $ (13,906,215)

General revenues:Property taxes, levied for general purposes $ 100,619,109 $ — $ 100,619,109 — Property taxes, levied for debt services 26,780,972 — 26,780,972 — Specific ownership taxes 10,272,642 — 10,272,642 — Unrestricted earnings on investments 476,355 2,971 479,326 16,595 Miscellaneous 1,448,621 — 1,448,621 116,709 Gain on sale of assets 31,125 — 31,125 — Equalization 99,266,299 — 99,266,299 — Charter school funding — — — 13,694,681

Total general revenues 238,895,123 2,971 238,898,094 13,827,985

Change in net position 3,909,940 (296,413) 3,613,527 (78,230)

Extraordinary loss (187,644) — (187,644) —

Net position at beginning of year (as restated) 155,518,395 2,431,887 157,950,282 7,253,784

Net position at end of year $ 159,240,691 $ 2,135,474 $ 161,376,165 $ 7,175,554

The accompanying notes are an integral part of the basic financial statements.

Program RevenuesNet (Expense) Revenue and

Changes in Net Position

Poudre School DistrictGovernment-Wide Statement of ActivitiesFor the Fiscal Year Ended June 30, 2014

30

DesignatedSpecial Public Total

Debt Capital Purpose School GovernmentalGeneral Service Projects Grants Activities Funds

ASSETS

Cash and investments (including restricted amounts) $ 68,004,351 $ 33,496,381 $ 26,328,003 $ — $ 5,661,782 $ 133,490,517 Cash with Larimer County Treasurer 1,291,289 100,135 — — — 1,391,424 Prepaid items 150,352 — — — — 150,352 Prepaid deposits 51,500 — — — — 51,500 Receivable from grantor agencies — — — 4,526,506 — 4,526,506 Accounts receivable 823,513 — — 3,885 61,362 888,760 Property taxes receivable 2,763,775 737,743 — — — 3,501,518 Due from other funds 3,194,194 — — — — 3,194,194

Total assets $ 76,278,974 $ 34,334,259 $ 26,328,003 $ 4,530,391 $ 5,723,144 $ 147,194,771

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES

Liabilities:Accounts payable $ 7,537,556 $ — $ 5,731,363 $ 314,411 $ 118,928 $ 13,702,258 Due to other funds — — — 3,194,194 — 3,194,194 Due to component units 98,545 — — — — 98,545 Accrued salaries and benefits 11,723,894 — — 873,663 421,083 13,018,640 Retirement severance payable 287,141 — — — — 287,141 Unearned revenue — — — 148,123 — 148,123 Estimated liability for unsubmitted claims 1,163,000 — — — — 1,163,000

Total liabilities 20,810,136 — 5,731,363 4,530,391 540,011 31,611,901

Deferred inflows of resources:Unavailable property taxes 893,709 239,701 — — — 1,133,410

Total liabilities and deferred inflows of resources 21,703,845 239,701 5,731,363 4,530,391 540,011 32,745,311

Fund balances:Nonspendable:

Prepaid items 150,352 — — — — 150,352 Restricted for:

TABOR 7,400,000 — — — — 7,400,000 School site acquisition, expansion and development 5,029,706 — — — — 5,029,706 Debt service — 34,094,558 — — — 34,094,558 Capital projects — — 19,993,041 — — 19,993,041 Public school activities — — — — 5,183,133 5,183,133

Assigned for:Carryover budgets 24,831,061 — — — — 24,831,061 Career incentive compensation 570,062 — — — — 570,062 Enrollment adjustments 878,980 — — — — 878,980 Capital projects — — 603,599 — — 603,599

Unassigned:Required contingency reserves 6,658,113 — — — — 6,658,113 Appropriated reserve 9,056,855 — — — — 9,056,855

Total fund balances 54,575,129 34,094,558 20,596,640 — 5,183,133 114,449,460

Total liabilities, deferred inflows of resources, and fund balances $ 76,278,974 $ 34,334,259 $ 26,328,003 $ 4,530,391 $ 5,723,144 $ 147,194,771

The accompanying notes are an integral part of the basic financial statements.

Poudre School DistrictGovernmental Funds

Balance SheetJune 30, 2014

31

Total fund balances - governmental funds $ 114,449,460

Amounts reported for governmental activities in the statement of netposition are different because:

Property taxes will be collected this year but are notavailable soon enough to pay for the current period'sexpenditures, and therefore are not recorded in the funds. 1,133,410

Capital assets used in governmental activities are not financialresources and therefore are not reported as assets in governmental funds. The cost of the assets is $425,173,055,and the accumulated depreciation is ($172,219,333). 252,953,722

Debt premiums and deferred outflows of resources from debt refundings are reported when incurred in governmental funds and are deferred and amortized in the statement of activities. Net premiums total ($7,884,344), and the netdeferred outflows of resources from debt refundings are $1,650,747. (6,233,597)

Internal service funds are used by the District's managementto account for items relating to its employee self-insuranceand warehouse. Assets relating to these funds are includedwith governmental activities as follows:

Cash and investments 19,538,726 Accounts receivable 147,193 Prepaid deposit 12,902 Inventory 365,615 Capital assets (cost $28,500; accumulated depreciation $28,500) — 20,064,436

Liabilities relating to these funds are also included withgovernmental activities and are as follows:

Current: Accounts payable (847,564) Estimated liability for unsubmitted claims (4,424,033) Noncurrent: Employee compensated absences (17,433) (5,289,030)

Accreted interest on capital appreciation bonds is not includedon the fund financial statements but is included on the government-wide statements. (670,023)

Noncurrent liabilities, including bonds payable, are not due in the current period and therefore are not reported as liabilities in thefunds. Noncurrent liabilities at year end consist of:

Bonds payable (215,727,067) Accrued interest (428,582) Employee compensated absences (1,012,038) (217,167,687)

Total net position - governmental activities $ 159,240,691

The accompanying notes are an integral part of this financial statement.

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Poudre School DistrictGovernmental Funds

Statement of Revenues, Expendituresand Changes in Fund Balances

For the Fiscal Year Ended June 30, 2014

DesignatedSpecial Public Total

Debt Capital Purpose School GovernmentalGeneral Service Projects Grants Activities Funds

Revenues:Local sources $ 116,592,919 $ 26,933,498 $ 170,258 $ 235,958 $ 10,368,510 $ 154,301,143 State sources 107,197,603 — — 452,623 — 107,650,226 Federal sources 117,567 1,042,354 — 12,687,500 — 13,847,421

Total revenues 223,908,089 27,975,852 170,258 13,376,081 10,368,510 275,798,790

Expenditures:Current—

Instruction 119,163,546 — 166,520 7,154,077 10,240,819 136,724,962 Support services:

Students 12,380,473 — — 3,005,410 307,356 15,693,239 Instructional staff 15,267,520 — — 2,259,522 217,791 17,744,833 General administration 2,719,822 — — — 62,000 2,781,822 School administration 15,787,707 — — 42,688 387,807 16,218,202 Business 2,148,708 — — 558,578 271 2,707,557 Operation and maintenance of plant 20,750,520 — 1,668,079 43,263 39,429 22,501,291 Student transportation 7,163,580 — — 40,194 1,825 7,205,599 Central 10,152,554 — 399,184 20,557 46,110 10,618,405 Other 174,712 — — — 150 174,862

Food services operations 1,700 — 50,823 — 3,805 56,328 Community services 170,529 — — 246,992 832 418,353 Education for adults 41,784 — — — — 41,784 Facilities acquisition and construction 123,255 — 1,304,930 — — 1,428,185

Capital outlay 1,515,254 — 12,441,757 4,800 62,130 14,023,941 Debt service—

Purchased services — 3,850 — — — 3,850 Interest on debt — 11,979,215 — — — 11,979,215 Retirement of debt — 17,805,839 — — — 17,805,839

Charter school funding 13,694,681 — — — — 13,694,681

Total expenditures 221,256,345 29,788,904 16,031,293 13,376,081 11,370,325 291,822,948

Excess (deficiency) of revenuesover (under) expenditures 2,651,744 (1,813,052) (15,861,035) — (1,001,815) (16,024,158)

Other financing sources (uses):Proceeds from sale of assets 31,125 — — — — 31,125 Transfers in 325,748 — — — 1,011,829 1,337,577 Transfers (out) (1,011,829) — — — (325,748) (1,337,577)

Total other financingsources (uses) (654,956) — — — 686,081 31,125

Net change in fund balance 1,996,788 (1,813,052) (15,861,035) — (315,734) (15,993,033)

Extraordinary loss (187,644) — — — — (187,644)

Fund balances at beginning of year 52,765,985 35,907,610 36,457,675 — 5,498,867 130,630,137

Fund balances at end of year $ 54,575,129 $ 34,094,558 $ 20,596,640 $ — $ 5,183,133 $ 114,449,460

The accompanying notes are an integral part of the basic financial statements.

33

Total net changes in fund balances - governmental funds (16,180,677)$

Amounts reported for governmental activities in the statement of activities are different because:

Revenues that do not provide current financial resources areunearned on the governmental fund financial statements butrecognized on the government-wide statement of activities. (585,324)

Capital outlays are reported in governmental funds as expenditures.However, in the statement of activities, the cost of those assetsis allocated over their estimated useful lives as depreciationexpense. This is the amount by which capital outlay,$14,023,941, exceeds depreciation expense ($10,789,688). 3,234,253

Repayment of debt principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the statement of net position. 17,805,839

Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interestis recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In thestatement of activities, however, interest expense is recognizedas the interest accrues, regardless of when it is due. 34,644

Interest on capital appreciation bonds is included in fund statements when paid; however, accreted interest on capital appreciation bonds is shown on the government-wide financial statements. The effect of includingaccreted interest is to increase net position. 216,125

In the statement of activities, certain operating expenses, such asemployee compensated absences, are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). (42,230)

Governmental funds report the effect of premiums and deferred outflows ofresources from debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.This amount includes premium amortization of $1,504,196 and deferredoutflows of resources from debt refundings amortization of ($953,985). 550,211

Internal service funds are used by the District's management for items relating to its employee self-insuranceand warehouse. Revenues and costs relating to

these funds are included in governmental activities as follows:

Local revenues 6,838,778 Expenses (8,149,323) (1,310,545)

Change in net position - governmental activities 3,722,296$

The accompanying notes are an integral part of this financial statement.

34

Poudre School DistrictProprietary Funds

Statement of Net PositionJune 30, 2014

Business-type GovernmentalActivities Activities

Enterprise InternalFund— ServiceFood Funds

Service Total

ASSETS

Current assets:Cash and cash equivalents $ 1,277,799 $ 19,369,764 Cash - restricted — 168,962 Receivable from grantor agencies 457,544 — Accounts receivable 9,896 147,193 Prepaid deposit — 12,902 Inventory 350,621 365,615

Total current assets 2,095,860 20,064,436

Noncurrent assets:Capital assets:

Equipment 1,130,031 28,500 Less accumulated depreciation (698,139) (28,500)

Total capital assets (net of accumulated depreciation) 431,892 —

Total assets 2,527,752 20,064,436

LIABILITIES

Current liabilities:Accounts payable 211,304 847,564 Accrued salaries and benefits 166,584 — Estimated liability for unsubmitted claims — 4,424,033

Total current liabilities 377,888 5,271,597

Noncurrent liabilities:Due in more than one year 14,390 17,433

Total noncurrent liabilities 14,390 17,433

Total liabilities 392,278 5,289,030

NET POSITION

Net investment in capital assets 431,892 — Restricted for payment of claims — 50,623 Unrestricted 1,703,582 14,724,783

Total net position $ 2,135,474 $ 14,775,406

The accompanying notes are an integral part of the basic financial statements.

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Poudre School DistrictProprietary Funds

Statement of Revenues, Expensesand Changes in Fund Net Position

For the Fiscal Year Ended June 30, 2014

Business-type GovernmentalActivities Activities

Enterprise InternalFund— ServiceFood Funds

Service Total

Operating revenues:District Contributions $ — $ 15,526,510 Employee Contributions — 6,641,794 Sales 3,276,336 1,045,237

Total operating revenues 3,276,336 23,213,541

Operating expenses:Administration:

Salaries 2,394,543 524,826 Employee benefits 715,540 147,550 Purchased services 172,488 1,366,690 Operating supplies 4,402,389 966,575 Internal charges 237 277

Depreciation 63,175 — Utilities 339,993 — Claims — 20,044,695 Premiums — 1,549,367 Other 3,168 3,366

Total operating expenses 8,091,533 24,603,346

Operating (loss) income (4,815,197) (1,389,805)

Non-operating revenues:State sources 112,044 — Federal sources:

National School Lunch 4,013,854 — USDA donated commodities 389,915 —

Investment earnings 2,971 79,260

Total non-operating revenues 4,518,784 79,260

Change in net position (296,413) (1,310,545)

Total net position at beginning of year 2,431,887 16,085,951

Total net position at end of year $ 2,135,474 $ 14,775,406

The accompanying notes are an integral part of the basic financial statements.

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Business-type GovernmentalActivities Activities

Enterprise InternalFund— ServiceFood Funds

Service Total

Cash flows from operating activities:Received from customers $ 3,271,495 $ 23,081,965 Payments to employees (3,095,398) (677,393) Payments to suppliers for goods and services (4,429,207) (2,033,043) Payments for claims and insurance — (22,680,029) Payments to other funds (237) (277)

Net cash used by operating activities (4,253,347) (2,308,777)

Cash flows from noncapital financing activities:Non-operating federal grants 3,994,231 — Non-operating state grants 112,044 —

Net cash provided by noncapital financing activities 4,106,275 —

Cash flows from capital and related financing activitiesAcquisition of capital assets (66,173) —

Net cash used by capital and related financing activities (66,173) —

Cash flows from investing activities:Interest received 2,971 79,260

Net cash provided by investing activities 2,971 79,260

Net decrease in cash and cash equivalents (210,274) (2,229,517)

Cash and cash equivalents at beginning of year 1,488,073 21,768,243

Cash and cash equivalents at end of year $ 1,277,799 $ 19,538,726

Reconciliation of operating loss to net cash used by operating activities:

Operating loss $ (4,815,197) $ (1,389,805) Adjustments to reconcile operating loss to

net cash used by operating activities:Depreciation expense 63,175 — Commodities used 389,915 — Accounts receivable (4,841) (131,576) Prepaid expense — 136,013 Inventory 93,100 (47,624) Accounts payable 5,816 215,199 Accrued salaries and benefits 17,104 — Employee compensated absences (2,419) (5,017) Estimated liability for unsubmitted claims — (1,085,967)

Net cash used by operating activities $ (4,253,347) $ (2,308,777)

Noncash investing and financing activities:USDA donated commodities $ 389,915 $ —

The accompanying notes are an integral part of the basic financial statements.

Poudre School DistrictProprietary Funds

Statement of Cash FlowsFor the Fiscal Year Ended June 30, 2014

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Poudre School DistrictPrivate-Purpose Trust Fund

Statement of Fiduciary Net PositionJune 30, 2014

ASSETS

Cash and investments $ 344,180 Accounts receivable 22

Total assets 344,202

NET POSITION

Held in trust for:Individuals, organizations and other governments 344,202

Total net position $ 344,202

The accompanying notes are an integral part of the basic financial statements.

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Poudre School DistrictPrivate-Purpose Trust Fund

Statement of Changes in Fiduciary Net PositionFor the Fiscal Year Ended June 30, 2014

ADDITIONS

Contributions:Private donations $ 70,313

Interest earnings 1,094

Total additions 71,407

DEDUCTIONS

Payments in accordance with trust agreements 97,318

Total deductions 97,318

Change in net position (25,911)

Net position at beginning of year 370,113

Net position at end of year $ 344,202

The accompanying notes are an integral part of the basic financial statements.

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TotalMountain Discretely

Liberty Ridgeview Sage PresentedCommon Classical Community ComponentSchool Schools School Units

ASSETSCash and investments $ 4,084,077 $ 1,994,672 $ 160,265 $ 6,239,014 Restricted cash and investments 4,612,184 1,175 — 4,613,359 Due from primary government 60,633 33,524 4,388 98,545 Prepaid expense — 46,836 16,195 63,031 Accounts receivable — 46,836 77,086 123,922 Land 1,528,455 785,000 — 2,313,455 Construction in progress 2,059,253 — — 2,059,253 Water rights 12,864 — — 12,864 Other capital assets, net of

accumulated depreciation:Buildings and site improvements 7,636,550 7,774,497 — 15,411,047 Equipment 472,435 58,753 — 531,188 Vehicles 42,533 — — 42,533

Total assets 20,508,984 10,741,293 257,934 31,508,211

DEFERRED OUTFLOWS OF RESOURCESLoss on deferred on bond refundings 235,249 — 235,249

LIABILITIESAccounts payable 22,298 118,236 67,954 208,488 Accrued salaries and benefits 341,196 309,430 36,761 687,387 Accrued interest 197,547 — — 197,547 Unearned revenue 102,090 — 1,400 103,490 Noncurrent liabilities:

Due within one year 235,000 108,694 — 343,694 Due in more than one year 16,394,993 6,559,210 — 22,954,203

Total liabilities 17,293,124 7,095,570 106,115 24,494,809

DEFERRED INFLOWS OF RESOURCESGain on deferred on bond refundings — 73,097 73,097

NET POSITIONNet investment in capital assets (4,877,903) 1,877,249 — (3,000,654) Restricted for:

Debt service 1,401,303 48,011 — 1,449,314 Construction 2,970,877 — — 2,970,877 TABOR 232,737 187,179 35,000 454,916 Repair and replacement of facility 240,004 — — 240,004

Unrestricted 3,484,091 1,460,187 116,819 5,061,097

Total net position $ 3,451,109 $ 3,572,626 $ 151,819 $ 7,175,554

The accompanying notes are an integral part of this financial statement.

Poudre School DistrictDiscretely Presented Component Units

Statement of Net PositionJune 30, 2014

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Capital Grants/ MountainOperating Restricted Liberty Ridgeview Sage

Charges for Grants and Investment Common Classical CommunityActivities: Expenses Services Contributions Earnings School Schools School TotalLiberty Common School

Instruction $ 5,574,276 $ 258,608 $ 5,387 $ — $ (5,310,281) $ — $ — $ (5,310,281) Support services:

Operations and maintenance of plant 408,463 — — — (408,463) — — (408,463) General administration 1,747,020 — 231,009 — (1,516,011) — — (1,516,011) Other support services 664,977 — — — (664,977) — — (664,977)

Food service operations 102,871 107,363 — — 4,492 — — 4,492 Interest on debt 718,450 1,303,246 — — 584,796 — — 584,796

Total - Liberty Common School 9,216,057 1,669,217 236,396 — (7,310,444) — — (7,310,444)

Ridgeview Classical SchoolsInstruction 4,267,187 444,324 — — — (3,822,863) — (3,822,863) Support services:

Operations and maintenance of plant 256,011 — — — — (256,011) — (256,011) General administration 1,388,873 — — — — (1,388,873) — (1,388,873) Other support services 361,401 — — — — (361,401) — (361,401)

Interest on debt 355,755 587,543 — — — 231,788 — 231,788 Total - Ridgeview Classical Schools 6,629,227 1,031,867 — — — (5,597,360) — (5,597,360)

Mountain Sage Community SchoolInstruction 891,759 67,298 216,631 — — — (607,830) (607,830) Support services 391,996 — 1,415 — — — (390,581) (390,581)

Total - Mountain Sage Community School 1,283,755 67,298 218,046 — — — (998,411) (998,411)

Total component units $ 17,129,039 $ 2,768,382 $ 454,442 $ — (13,906,215)

General revenues:Unrestricted earnings on investments 5,602 10,993 — 16,595 Charter school funding 7,216,387 5,354,399 1,123,895 13,694,681 Miscellaneous 22,348 80,568 13,793 116,709

Total general revenues 7,244,337 5,445,960 1,137,688 13,827,985 Change in net position (66,107) (151,400) 139,277 (78,230)

Net position at beginning of year (as restated) 3,517,216 3,724,026 12,542 7,253,784 Net position at end of year $ 3,451,109 $ 3,572,626 $ 151,819 $ 7,175,554

The accompanying notes are an integral part of this financial statement.

Program Revenues Net (Expense) Revenue and Changes in Net Position

Poudre School DistrictDiscretely Presented Component Units

Statement of ActivitiesFor the Fiscal Year Ended June 30, 2014

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Note 1: Summary of Significant Accounting Policies The accounting policies of Poudre School District (the District) conform to accounting principles

generally accepted in the United States of America that are applicable to local governmental units. The following is a summary of the District's significant accounting policies.

Reporting Entity

In conformance with Governmental Accounting and Financial Reporting Standards, Poudre School District, Larimer County, Fort Collins, Colorado, is the reporting entity for financial reporting purposes. The District is the primary government financially accountable for all activities of public school instruction within the geographical area organized as Poudre School District, Larimer County, Fort Collins, Colorado. The District meets the criteria of a primary government: its Board of Education is the publicly elected governing body; it is a legally separate entity; and it is fiscally independent.

The financial statements of the District include all funds that are controlled by or dependent upon the

Board of Education. Control by or dependence on the Board of Education is determined on the basis of budget adoption, taxing authority, outstanding debt which may be secured by general obligation of the District and the responsibility of the District to finance debt or make subsidies to funds.

The District is not included in any other governmental reporting entity as defined in Governmental

Accounting Standards Board (GASB) Statement No. 61, “The Financial Reporting Entity: Omnibus—An Amendment of GASB Statements No. 14 and No. 39.” As required by accounting principles generally accepted in the United States of America, these basic financial statements present the District (the primary government) and its component units. The component units discussed below are included in the District’s reporting entity because of the nature and significance of their operational or financial relationships with the District.

Discretely Presented Component Units

Charter Schools The State of Colorado’s Legislature in 1993 enacted the “Charter School Act” (C.R.S. 22-30.5-101).

This Act permits the District to contract with individuals and organizations for the operation of schools within the District. The statutes define these contracted schools as “charter schools.” Charter schools are financed from a portion of the District’s School Finance Act revenues and from revenues generated by the charter schools within the limits established by the Charter School Act. Charter schools have separate governing boards; however, the District’s Board of Education must approve all charter school applications and budgets. Poudre School District has authorized three charter schools: Liberty Common School, Ridgeview Classical Schools, and Mountain Sage Community School. The charter schools are discretely presented component units because the District is accountable for their financial reporting. Both Liberty Common School and Ridgeview Classical Schools have separate building corporations which were established to own and finance the buildings used by the schools through bond financing obtained through the Colorado Educational and Cultural Facilities Association. These building corporations are reported as blended component units in the charter schools’ financial statements. Liberty Common School also has a blended component unit, the Core Knowledge Charter School Foundation, a non-profit organization with limited activity that was formed to perform fundraising operations for Liberty Common School.

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Note 1: Summary of Significant Accounting Policies (Continued)

Complete financial statements for each charter school are available at each school’s administrative office.

Liberty Common School Ridgeview Classical Schools Mountain Sage Community School 1725 Sharp Point Dr 1800 S Lemay 2310 East Prospect Rd, Suite A Fort Collins, CO 80525 Fort Collins, CO 80525 Fort Collins, CO 80525

Government-Wide and Fund Financial Statements The government-wide financial statements (the statement of net position and the statement of

activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from discretely presented component units for which the primary government is financially accountable (charter schools).

The statement of activities demonstrates the degree to which the direct expenses of a given function

or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students or individuals who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary

funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year in which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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Note 1: Summary of Significant Accounting Policies (Continued)

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the District’s governmental and business-type activities and component units. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Governmental fund financial statements are reported using the current financial resources focus and

the modified accrual basis of accounting. Revenues are recognized as soon as they are both “measurable” and “available.” “Measurable” means that the amount of the transaction can be determined. “Available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property tax revenues are considered to be available if collected within 60 days after the end of the fiscal year. All other revenues such as grant revenues and other miscellaneous revenues are considered to be available if collected within 150 days after the end of the fiscal year. Expenditures are recognized in the accounting period in which the fund liability is incurred, except for general obligation debt service, as well as expenditures related to compensated absences, which are accounted for as expenditures in the year the payment is due.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating

revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s enterprise fund and of the District’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use

restricted resources first, then unrestricted resources as they are needed.

Fund Accounting

The accounts of the District are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate self-balancing set of accounts that comprise its assets, liabilities, fund balance or net position, revenues and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are to be controlled. The funds presented in the accompanying basic financial statements are as follows:

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Note 1: Summary of Significant Accounting Policies (Continued) Major Governmental Funds General Fund: The General Fund is the operating fund of the District. It is used to account for all

financial resources except those required to be accounted for in another fund. Debt Service – Bond Redemption Fund: The Debt Service Fund is used to account for the

accumulation of financial resources to be used for the payment of general obligation long-term debt principal, interest and related costs.

Capital Projects – Building Fund: The Capital Projects Fund is used to account for bond proceeds expended for the purpose of improving, equipping, and furnishing District buildings and other property.

Special Revenue – Designated Special Purpose Grants Fund: The Designated Special Purpose

Grants Fund is used to account for financial resources related to federal, state, and local governmental grant awards.

Special Revenue – Public School Activities Fund: The Public School Activities Fund is used primarily

to record the financial transactions related to school-sponsored activities. The activities are generally supported by donations/contributions and fundraising activities.

Major Proprietary Funds Enterprise – Food Service Fund: Enterprise Funds are used to account for operations that are

conducted in a manner similar to private business enterprises; i.e., where the intent of the Board of Education is that the costs (expenses, including depreciation) of providing goods and services to students, teachers, and the general public (including other school districts) on a continuing basis be financed and recovered primarily through user charges. This fund has been established to record financial transactions related to food service operations (providing breakfast and lunch to students).

Non-Major Funds

Non-Major Proprietary (Internal Service Funds): Internal Service Funds account for the financing of

goods or services to other departments of the District and to other governments on a cost-reimbursement basis. Such funds include the Employee Self-Insurance and Warehouse Funds.

Fiduciary — Private-Purpose Trust Fund

Trust Funds are used to account for assets held by the District in a trustee capacity for others and which cannot be used to support the government’s own programs. The Private-Purpose Trust Fund is used to report all trust arrangements under which principal and interest benefit individuals, organizations, or other governments. This fund has been established primarily for the purpose of granting scholarships to the District’s students.

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Note 1: Summary of Significant Accounting Policies (Continued) Budgets and Budgetary Accounting

Annual budgets are established for all funds of the District as required by Colorado statutes. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles, except in the General Fund where salaries and benefits are budgeted on a cash basis. Colorado statutes allow cash basis budgeting for salaries and benefits, eliminating the need to fund accrued salaries, benefits and related liabilities in the current year. See Note 12 for budgetary basis to GAAP reconciliation for the General Fund.

Each Board of Education shall adopt an annual budget on or before June 30. If, after adoption of the

budget, the District receives unanticipated revenues or revenues not assured at the time of the adoption of the budget from any source other than the local government’s property tax mill levy, the Board of Education may authorize the expenditure of such funds by enacting a supplemental budget and appropriation.

Budget amounts included in the financial statements are based on the final budget as adopted by the Board of Education on January 28, 2014. Original budgets for all funds were adopted by the Board of Education on June 11, 2013.

Budget appropriations lapse at the end of each fiscal year. The following is a summary of the significant dates and procedures used in establishing budgeted

data reflected in the financial statements: • On or before May 31, the Budget Manager (not an elected official) submits to the Board of

Education a proposed budget for the succeeding fiscal year.

• Within ten days after submission of the proposed budget, public notice is published stating the time and place of public hearing(s) to be conducted to obtain taxpayer comments on the budget prior to adoption.

• On or before June 30, the budget is adopted by formal resolution.

• November 10, pupil count information is provided by school districts to the Colorado Department of Education, for use in determining the state funding level for the current fiscal year.

• December 15, school districts certify to county commissioners, copied to CDE, the mill levies for the various property tax-supported funds of the District.

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Note 1: Summary of Significant Accounting Policies (Continued) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. The estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenditures or expenses during the reporting period. Actual results could differ from these estimates.

Significant estimates in the accompanying financial statements pertain to the General Fund and the Employee Self-Insurance Fund of the District. The District estimates the potential amount of claims and the amount of the claims that may be reimbursed under various insurance policies. Should insurance claims be significantly higher and/or insurance reimbursement be significantly lower than those estimates, the District financial statements would be adversely impacted.

Cash and Investments

Cash and cash equivalents are considered to be cash on hand, cash with the county treasurer, demand deposits, investment in investment pools set up under state statute such as ColoTrust, as well as all highly liquid debt instruments purchased with a maturity of three months or less. Investments are reported at fair value. Cash that is not available for current operations is reported as restricted cash and consists of cash held by the bond redemption fund custodian and third-party administrators for self-insurance.

Accounts Receivable

Property taxes levied in 2013 but not yet collected in 2014 are identified as property taxes receivable and deferred inflows of resources in the fund statements as the revenue is not available at June 30, 2014, and are presented net of an allowance for uncollectible taxes. This allowance is calculated at .5% of the amount levied for the year. The amounts calculated as of June 30, 2014, was $505,518 and $134,544 for the District’s General Fund and Bond Redemption Fund, respectively.

Property Taxes

The District's property taxes, levied by January 1 on assessed valuation of the preceding year, are due and payable in the current calendar year. Assessed values are established by the county assessor. Property taxes attach as an enforceable lien on property as of January 1 of the year in which payable. The taxes are payable under two methods: (1) in full on or before April 30, or (2) one-half on or before February 28 and the remaining one-half on or before June 15. Taxes are collected by the Larimer County Treasurer and are remitted to the District on the 10th of the month following collection. Final budgeted and actual property tax revenues are based on the final assessed valuation including changes recorded by the county assessor through December 10.

Inventories and Prepaid Items

Inventories consist of food and non-food items in the Food Service (Enterprise) Fund and expendable supplies in the Warehouse (Internal Service) Fund. Inventories which are purchased are valued at cost using the weighted average method. The United States Department of Agriculture (USDA) donates food commodities to the District which are valued at estimated fair market value at the date of receipt. USDA commodities are recorded as both a non-operating revenue and an operating expense when consumed. Commodities on hand are included in inventory and are reported as unearned revenue. All other inventory items are recorded as operating expenses when purchased.

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Note 1: Summary of Significant Accounting Policies (Continued)

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets

Capital assets, which include land, buildings, site improvements, intangible assets such as computer software and water rights, vehicles and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the District as assets with an individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, representing less than one percent of total assets, are valued at their estimated fair market value on the date donated. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. An annual capital asset inventory is performed in accordance with state law [C.R.S. 29-1-506].

The District’s capital assets are depreciated using the straight-line method over the estimated useful

lives of the assets as follows. Buildings and improvements 20–40 years Vehicles 8 years Equipment 5–10 years Intangible assets Determined on case-by-case basis

Deferred Outflows and Inflows of Resources

In addition to assets, the statements of financial position (the government-wide statement of net position and governmental funds balance sheet) will sometimes report a separate section for deferred outflows of resources. The separate financial statement element, deferred outflows of resources, represents a consumption of net position and/or fund balance that applies to one or more future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statements of financial position will sometimes report a separate section

for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to one or more future periods and so will not be recognized as an inflow of resources (revenue) until that time.

Accrued Salaries and Benefits

Salaries of teachers and certain other employees are paid over a 12-month period ending July 31. However, most salaries are earned over the traditional school year of August through May. The difference between salary and related benefit amounts earned from August 1 through June 30 and corresponding amounts paid during this period is shown as a liability for accrued salaries and benefits in the amount of $13,185,224. The District's accounting and budgetary treatment for this liability is summarized below:

• Accrued salaries and benefits are shown as a liability on the balance sheet.

• Any increase or decrease in the liability during the period for accrued salaries and benefits is reflected in the appropriate expenditure account.

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Note 1: Summary of Significant Accounting Policies (Continued)

• For budgetary purposes, in the General Fund, the liability for accrued salaries and benefits is not considered in determining the resources available for subsequent years’ expenditures. (See Note 12.)

Employee Compensated Absences The liability and expense for unpaid vacation is recorded when the vacation leave is earned in the

proprietary funds of the District and the government-wide financial statements. The governmental funds record expenditures for unpaid vacation leave only to the extent of the expected liquidation of unpaid vacation in current operations. This expected liquidation occurs for compensated absences which have matured, for example, as a result of employee resignations and retirements. The amounts recorded as liabilities for all compensated absences include salary-related payments associated with the payment of compensated absences, using the rates in effect at the balance sheet date.

Retirement Severance Payable

The District offers termination benefits to various classes of employees. Employees are eligible for these benefits after meeting specified criteria, including years of service, continuous years of service and type of service. The calculation of these benefits is performed based on the number of unused sick leave days at the time of retirement multiplied by a standard amount. The standard amount varies based on years of service. These benefits are generally paid out over a one-year period. At June 30, 2014, 43 employees met the eligibility requirements and the District recorded a liability for the retirement severance payable in the amount of $287,141.

Non-Current Liabilities

In the government-wide financial statements and proprietary fund types in the fund financial

statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds based on the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as an other financing source. Premiums and discounts received on debt issuance are reported as other financing sources or uses. Issuance costs whether or not withheld from the actual debt proceeds received are reported as debt service expenditures.

49

Note 1: Summary of Significant Accounting Policies (Continued)

Adoption of New Accounting Standards

The GASB issued Statement No. 68 Accounting and Financial Reporting for Pensions (Statement No. 68), which revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits. Poudre School District provides its employees with pension benefits through a multiple employer cost-sharing defined benefit retirement program administered by the Public Employees’ Retirement Association of Colorado (PERA). (See Note 10 for more information.) Statement No. 68 requires cost-sharing employers participating in the PERA program, such as Poudre School District, to record their proportionate share, as defined in Statement No. 68, of PERA’s unfunded pension liability. Poudre School District has no legal obligation to fund this shortfall nor does it have any ability to affect funding, benefits, or annual required contribution decisions made by PERA. The requirement of Statement No. 68 to record a portion of PERA’s unfunded liability will negatively impact Poudre School District’s future unrestricted net position. Statement No. 68 is effective for fiscal year 2015. At this time, management is unable to estimate the magnitude of this impact. Information regarding PERA’s current funding status can be found in its Comprehensive Annual Financial Report. Statement No. 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources, or deferred inflows of resources, certain items that were previously reported as assets and liabilities, and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The provisions of this Statement are effective for financial statement periods beginning after December 15, 2012. The District’s adoption of this Statement required that debt issuance costs be expenses in the period incurred, resulting in a restatement of net position (see Note 14).

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Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance Fund balances of the governmental funds are classified as follows: Nonspendable – amounts that cannot be spent either because they are not spendable in form or

because they are legally or contractually required to be maintained intact. Restricted – amounts that are subject to externally enforceable legal purpose restrictions imposed by

creditors, grantors, contributors, or laws and regulations of other governments; or through constitutional provisions or enabling legislation.

Committed – amounts that are subject to a purpose constraint imposed by a formal action of the

Board of Education. The Board of Education is the highest level of decision-making authority for the District. Commitments may be established, modified or rescinded only through resolutions approved by the Board of Education.

Assigned – amounts that are subject to a purpose constraint that represents an intended use

established by the District in its budget process. The purpose of the assignment must be narrower than the purpose of the General Fund, and in funds other than the General Fund, assigned fund balance represents the residual amount of fund balance. Per District Policy DBAA – General Fund Balances, the Board delegates to the Superintendent or his/her designee the authority to assign funds to be used for specific purposes.

Unassigned – represents the residual classification for the District’s General Fund and could report a

surplus or deficit. District Policy DBAA – General Fund Balances states that the District shall strive to maintain an appropriated reserve amount in its General Fund within the range of 3% to 5% of each fiscal year’s expenditures and other financing uses. In addition to this established reserve within the unassigned fund balance category, the Board also authorized a contingency reserve of 3% of General Fund expenditures and other financing uses through their annual budget resolution process.

The details of the fund balances are included in the Governmental Funds Balance Sheet. When an

expenditure is incurred for a purpose regarding which both restricted and unrestricted (committed, assigned, or unassigned) fund amounts are available, restricted fund amounts shall be spent first if that can be accomplished in accordance with the fund restriction. When an expenditure is incurred for a purpose regarding which amounts in any of the unrestricted fund balance categories may be used, committed fund balance amounts shall be spent first, followed by assigned fund balance amounts and then unassigned fund balance amounts. Outstanding encumbrances totaling $3,535,297 and $5,965,615 have been included in the Assigned Fund Balance for General Fund – Carryover budgets and Restricted Fund Balance – Capital projects, respectively.

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Note 2: Cash in Bank and Investments In order to facilitate the recording of cash transactions and maximize earnings on investments, the

District has combined the cash and investments of most funds and maintains accountability for each fund’s equity in the pooled cash and investments. All funds of the District are eligible for investment and may be combined in an investment instrument to maximize earnings except for the Bond Redemption Fund account, which is required to be maintained for the annual payment of principal and interest payments on general obligation bonds. Investment earnings attributable to combined funds are distributed to each fund on a pro rata basis.

A reconciliation of cash and investments as shown on the Government-wide Statement of Net Position follows:

DiscretelyPresented

Primary ComponentGovernment Units

Cash on hand $ 48,651 $ 776 Cash with Larimer County Treasurer 1,391,424 — Carrying amount of total deposits 62,889,682 5,509,595 Carrying amount of deposits restricted

for debt service, future facility needs and third-party administrators 168,962 4,613,359

Carrying amount of total investments 91,543,927 728,643

Total cash and investments $ 156,042,646 $ 10,852,373

The cash and investments as shown above are included in the financial statements as follows:

Cash with Larimer County Treasurer $ 1,391,424 $ — Cash and investments 154,307,042 10,852,373

Total on statement of net position 155,698,466 10,852,373

Statement of fiduciary net position 344,180 —

Total cash and investments $ 156,042,646 $ 10,852,373

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Note 3: Cash in Bank Deposits

Colorado Revised Statutes govern the District’s deposits of cash. The District’s policy is to follow state law. The Public Deposit Protection Acts for banks and savings and loans require the state regulators to certify eligible depositories for public deposits. The Acts require the eligible depositories with public deposits in excess of federal insurance levels to create a single institution collateral pool of defined eligible assets. Eligible collateral includes obligations of the United States, obligations of the state of Colorado or local Colorado governments, and obligations secured by first lien mortgages on real property located in the state. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the assets in the pool must be at least equal to the uninsured deposits. At June 30, 2014, the District carrying amount of deposits was $63,058,644 and the bank balance was $63,794,485. (This includes the carrying amount of $344,180 for fiduciary fund cash.)

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the District will not be able to recover its deposits or will not be able to recover collateral securities that are in possession of an outside party. The District policy is to only place deposits in an eligible public depository as defined by State regulators with collateral defined by the PDPA.

Note 4: Investments The District is authorized by Colorado statutes to invest in the following: • Obligations of the United States, certain U.S. government agency securities and World Bank

• Certain international agency securities

• General obligation and revenue bonds of U.S. local government entities

• Bankers’ acceptances of certain banks

• Commercial paper

• Local government investment pools

• Obligations of the District

• Written repurchase agreements collateralized by certain authorized securities

• Certain money market funds

• Guaranteed investment contracts

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Note 4: Investments (Continued)

Custodial Credit Risk

Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. This type of risk is minimized by limiting investments to the types of securities allowed by State law, and by pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the District will do business using the criteria established in the investment policy.

Credit Risk

Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The District’s investment policy is to invest in accordance with state law; the District does not further limit its investment choices. At year end, the maturities of investments and the credit quality ratings are as follows:

% of 12 Months 13 to 24 Over 24 RatingInvestment Fair Value Portfolio or Less Months Months Rating Organization

Government investment pool - ColoTrust $ 18,796,560 20.54% 18,796,560 — — AAAm S&PGoldman Sachs Government Fund 39,788,740 43.46% 39,788,740 — — Not Rated Not RatedFederal Farm Credit Bank 5,111,514 5.58% 1,501,350 3,610,164 — AA+/Aaa S&P/Moody'sFederal Home Loan Bank 9,323,421 10.18% 1,505,205 6,618,780 1,199,436 AA+/Aaa S&P/Moody'sFederal Home Loan Mortgage Corp 3,292,353 3.60% — 1,500,645 1,791,708 AA+/Aaa S&P/Moody'sFederal National Mortgage Assoc 8,020,425 8.76% — 6,206,841 1,813,584 AA+/Aaa S&P/Moody'sUS Treasury Note 7,210,914 7.88% — 2,999,145 4,211,769 AA+/Aaa S&P/Moody's

$ 91,543,927 100.00% $ 61,591,855 $ 20,935,575 $ 9,016,497

Maturity

Interest Rate Risk

As a means of limiting exposure to fair value losses arising from interest rates, state law limits maturities to three years or less, unless the Board of Education specifically authorizes longer maturities. The District policy is to follow the state law.

The District participates in one investment pool, the Colorado Government Liquid Asset Trust

(ColoTrust), a non SEC-registered investment pool with regulatory oversight by the Colorado Securities Commissioner’s Office. The investment pool operates similarly to a money market fund; each share is equal in value to $1.00. The carrying amount and fair value of the investment are the same. Investments consist primarily of U.S. Treasury securities. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions of the investment pool. Substantially all securities owned by the investment pool are held by the Federal Reserve Bank in an account maintained for the custodial bank. The custodian’s internal records identify the investments owned by the investment pool. The District also participates in the Goldman Sachs Government Fund, a money market portfolio that comprises U.S. Treasury bills, bonds, notes and repurchase agreements.

In accordance with C.R.S. 22-45-103, the District’s bond redemption fund custodian for fiscal year

2014 was First National Bank, a third party. The amounts held by the custodian were $33,496,381 at June 30, 2014.

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Note 4: Investments (Continued)

Concentration of Credit Risk

The District has no policy that would limit the amount that may be invested with any one issuer; however, the District’s investment policy calls for investment diversification within the portfolio to avoid unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities.

Foreign Currency Rate Risk

Foreign currency rate risk is the risk that changes in monetary exchange rates will adversely affect the fair value of an investment or a deposit in terms of U.S. dollars. The District has no formal policy relating to foreign currency risk, nor are any deposits or investments exposed to foreign currency risk.

Note 5: Receivables Receivables, as of June 30, 2014, for the District’s individual major funds and non-major, internal

service and fiduciary funds were as follows:

ReceivableProperty fromTaxes Grantor Accounts

Fund Receivable Agencies Receivable Total

General Fund $ 2,763,775 $ — $ 823,513 $ 3,587,288 Debt Service Fund 737,743 — — 737,743 Designated Special Purpose Grants Fund — 4,526,506 3,885 4,530,391 Public School Activities Fund — — 61,362 61,362 Enterprise Fund — 457,544 9,896 467,440 Internal Service Funds — — 147,193 147,193 Fiduciary Fund — — 22 22

Total Receivables $ 3,501,518 $ 4,984,050 $ 1,045,871 $ 9,531,439

No significant receivable balances are not expected to be collected within one year. Governmental funds recognize revenue in connection with resources that have been received and

earned. As of June 30, 2014, unearned revenue was $148,123 in the Designated Special Purpose Grants Fund to reflect the amount of grant payments received before meeting all grant eligibility requirements. Property taxes that did not meet the District’s availability criteria in the General Fund for $893,709 and Debt Service Fund for $239,701 are reported as deferred inflows of resources.

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Note 6: Capital Assets Capital asset activity for the year ended June 30, 2014 was as follows:

Primary GovernmentBeginningBalance Increases Decreases Transfers

EndingBalance

Governmental Activities:Capital assets, not being depreciated:Land 19,570,177$ -$ -$ -$ 19,570,177$ Construction in progress 8,479,649 12,088,774 - (14,827,166) 5,741,257 Water rights 1,005,895 1,556 - - 1,007,451 Total capital assets, not being depreciated 29,055,721 12,090,330 - (14,827,166) 26,318,885

Capital assets, being depreciated:Buildings 348,100,071 - - 14,153,635 362,253,706 Site Improvements 9,568,604 - - - 9,568,604 Vehicles 14,861,253 1,069,438 (461,876) - 15,468,815 Software - 79,996 - 673,531 753,527 Other Equipment 10,042,930 784,177 (17,589) - 10,809,518 Total capital assets, being depreciated 382,572,858 1,933,611 (479,465) 14,827,166 398,854,170

Less accumulated depreciation for:Buildings (140,166,284) (8,875,363) - - (149,041,647) Site Improvements (3,444,051) (362,545) - - (3,806,596) Vehicles (12,700,189) (784,388) 461,876 - (13,022,701) Software - (64,824) (64,824) Other Equipment (5,598,586) (702,568) 17,589 - (6,283,565) Total accumulated depreciation (161,909,110) (10,789,688) 479,465 - (172,219,333)

Total capital assets, being depreciated, net 220,663,748 (8,856,077) - 14,827,166 226,634,837

Governmental activities capital assets, net 249,719,469$ 3,234,253$ -$ -$ 252,953,722$

Business-type Activities:Capital assets, being depreciated:Equipment 1,063,858$ 66,173$ -$ -$ 1,130,031$ Total capital assets, being depreciated 1,063,858 66,173 - - 1,130,031

Less accumulated depreciation for:Equipment (634,964) (63,175) - - (698,139) Total accumulated depreciation (634,964) (63,175) - - (698,139)

Total capital assets, being depreciated, net 428,894 2,998 - - 431,892

Business-type activities, capital assets, net 428,894$ 2,998$ -$ -$ 431,892$

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Note 6: Capital Assets (Continued)

Depreciation expense was charged to the programs of the primary government as follows:

Governmental Activities: Instructional $ 9,522,062 Unallocated (capital assets that serve essentially all of the District’s activities)

1,267,626

Total depreciation expense – governmental activities $ 10,789,688 Business-type Activities: Food services $ 63,715 Total depreciation expense – business-type activities $ 63,715

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Note 6: Capital Assets (Continued) Activity of the component units for the year ended June 30, 2014, was as follows:

Beginning EndingBalance Increases Decreases Transfers Balance

Capital assets, not being depreciated:Land $ 2,188,455 $ — $ — $ 125,000 $ 2,313,455 Water rights 12,864 — — — 12,864 Construction in progress 761,374 2,059,253 — (761,374) 2,059,253 Total capital assets, not being depreciated 2,962,693 2,059,253 — (636,374) 4,385,572

Capital assets, being depreciated:Buildings and site improvements 19,558,377 737,948 636,374 20,932,699 Other equipment 728,526 114,361 — 842,887 Vehicles — 44,000 — 44,000 Total capital assets, being depreciated 20,286,903 896,309 — 636,374 21,819,586

Less accumulated depreciation for:Buildings and site improvements (4,478,599) (629,026) (5,107,625) Other equipment (704,781) (20,945) (725,726) Vehicles — (1,467) (1,467) Total accumulated depreciation (5,183,380) (651,438) — — (5,834,818)

Total capital assets, being depreciated, net 15,103,523 244,871 — 636,374 15,984,768

Component unit capital assets, net $ 18,066,216 $ 2,304,124 $ — $ — $ 20,370,340

Depreciation expense was charged to the programs of discretely presented component units as follows:

Instructional $ 91,587General administration 513,678

$ 605,265

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Note 7: Long-Term Liabilities General Obligation Bonds Bonds payable at June 30, 2014, consisted of the following individual issues:

Balance June 30, 2014

$47,245,000 General Obligation Improvement Bonds, dated October 1, 1992, originally due in annual installments beginning in 1996 ranging from $5,000 to $9,805,000 through 2016; during the year ended June 30, 1999, $27,675,000 was advance refunded and defeased; the remaining bonds are due in installments beginning in December 1998 ranging from $5,000 to $5,000,000 through 2016; interest from 4.50% to 7.00% is payable semi-annually on June 15 and December 15. Certain portions of the bonds are subject to mandatory sinking fund redemption.

$ 13,500,000 $103,740,000 General Obligation Refunding Bonds, dated August 15, 2004, due in annual installments of $465,000 to $12,415,000 through 2023; interest from 2.00% to 5.00% is payable semi-annually on June 15 and December 15. 83,550,000 $19,999,466 General Obligation Bonds, dated February 16, 2006, due in annual installments of $77,540 to $2,080,000 through 2025; interest from 4.00% to 5.00% is payable semi-annually on June 15 and December 15. Capital appreciation bonds in the amount of $1,594,466 are included in this bond issue. Capital appreciation bonds are deeply discounted bonds and appreciate to their face value at maturity. The capital appreciation bonds start maturing in 2009 through 2015. The accreted interest on these bonds as of June 30, 2013 is $886,148 During the year ended, June 30, 2013, $15,855,000 current interest bonds were advanced refunded and defeased; the remaining bonds are due in installments beginning in December 2012 ranging from $77,540 to $189,687 through 2015; interest from 4.00% to 4.25% is payable semi-annually on June 15 and December 15. 182,067

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Note 7: Long-Term Liabilities (Continued)

Balance June 30, 2014

$41,770,000 General Obligation Refunding Bonds, dated September 16, 2008, due in annual installments of $325,000 to $6,490,000 through 2016, interest from 3.00% to 5.00% is payable semi-annually on June 15 and December 15. 12,595,000 $60,000,000 General Obligation Bonds, Taxable Build America Series, dated December 13, 2010, due in annual installments of $3,485,000 to $5,360,000 2017 through 2030, interest from 3.609% to 6.035% is payable semi-annually on June 15 and December 15. 60,000,000 $45,975,000 General Obligation Refunding and Improvement Bonds, dated November 15, 2012, due in annual installments of $75,000 to $4,195,000 through 2030, interest from 2.00% to 4.00% is payable semi-annually on June 15 and December 15. 45,900,000

Total

$ 215,727,067

The annual debt service requirements to amortize all outstanding bonds as of June 30, 2014, will be paid from the Debt Service – Bond Redemption Fund as follows:

TotalYears Principal Interest Requirement

2014-15 $ 17,964,527 $ 11,121,459 $ 29,085,9862015-16 18,827,540 10,164,789 28,992,3292016-17 20,930,000 7,997,831 28,927,8312017-18 17,500,000 7,086,868 24,586,8682018-19 18,190,000 6,327,311 24,517,3112019-24 68,025,000 21,282,970 89,307,9702024-29 38,495,000 9,050,737 47,545,7372029-31 15,795,000 853,966 16,648,966

Total $ 215,727,067 $ 73,885,931 $ 289,612,998

As of June 30, 2014, defeased refunding bonds aggregating $15,855,000 remain outstanding.

In accordance with state law, the District has appointed First National Bank as third party custodian for the administration of debt service payments.

As of June 30, 2014, the District had $30,000,000 in authorized but unissued bonds.

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Note 7: Long-Term Liabilities (Continued) Changes in Long-Term Liabilities The beginning balance in the table below was restated due to the implementation of GASB Statement

No. 65. Per this Statement, for debt refunding resulting in defeasance of debt, the difference between the reaquisition price and the net carrying amount of the old debt is reclassified as deferred inflows of resources or deferred outflows of resources, as applicable. This amount has been restated to properly classify the amount as a deferred inflow of resources.

Beginning AmountsBalance, as Ending Due Within

Restated Additions Reductions Balance One YearGovernmental Activities:

Bonds payable 233,532,906$ —$ (17,805,839)$ 215,727,067$ 17,964,527$ Plus premiums 9,388,540 — (1,504,196) 7,884,344 — Total bonds payable 242,921,446$ —$ (19,310,035)$ 223,611,411$ 17,964,527$

Other liabilitiesCompensated absences 992,258 1,205,840 (1,168,627) 1,029,471 112,753

Total 243,913,704$ 1,205,840$ (20,478,662)$ 224,640,882$ 18,077,280$

Business-Type Activities:Compensated absences 16,809$ 13,665$ (16,084)$ 14,390$ —$

Component Units:Bonds payable 18,470,000$ 23,457,904$ (18,470,000)$ 23,457,904$ 343,694$ Less deferred amounts:

Discounts — (160,007) — (160,007) — Premiums 504,726 (504,726) — —

Total 18,974,726$ —$ (18,974,726)$ 23,297,897$ 343,694$

Internal Service Funds predominantly serve the governmental funds. Accordingly, long-term liabilities for Internal Service Funds is included as part of the above totals for governmental activities.

At June 30, 2014, compensated absences are expected to be liquidated by the following funds:

General $ 987,829Internal Service 17,433Designated Special Purpose Grants 9,272Building 14,937

Total $ 1,029,471

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Note 7: Long-Term Liabilities (Continued)

Discretely Presented Component Units

Discretely presented component unit debt consisted of the following at June 30, 2014:

Bonds Payable Charter School Refunding and Improvement Bonds, Series 2014 A, due in annual installments ranging from $235,000 to $4,170,000 through January 2044; interest from 3.0% to 5.0% is payable semi-annually on January 15 and July 15. The bonds are subject to mandatory sinking fund requirements.

$15,150,000 Charter School Revenue Bonds Series 2014 B, due in one payment of $1,640,000 on January 15, 20144; interest rate of 5.625% is payable semi-annually on January 15 and July 15. The bonds are subject to mandatory sinking fund requirements. 1,640,000 Charter School Revenue Refunding Bonds, Series 2014 A, due in semi-annual installments ranging from $108,000 to $114,000 through August 2024; interest at 4% and is payable semi-annually on February 15 and August 15. On August 15, 2024 the interest rate will be reset and principal and interest payments adjusted. The bonds are subject to mandatory sinking fund requirements. 5,167,904 Charter School Revenue Refunding Bonds, Series 2014 B, due in semi-annual installments ranging from $23,000 to $33,000 through August 2024; interest at 4% and is payable semi-annually on February 15 and August 15. On August 15, 2024 the interest rate will be reset and principal and interest payments adjusted. The bonds are subject to mandatory sinking fund requirements. 1,500,000 Total

$23,457,904

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Transfers Transfers in Transfers outGovernmental Fund Types:

General $ 325,748 $ 1,011,829Public School Activities Fund 1,011,829 325,748

Total transfers $ 1,337,577 $ 1,337,577

Note 7: Long-Term Liabilities (Continued)

The annual debt service requirements to amortize all outstanding charter school revenue bonds as of June 30, 2014, was as follows:

TotalYear Principal Interest Requirement

2014-15 $ 343,694 $ 785,270 $ 1,128,9642015-16 516,621 1,034,204 1,550,8252016-17 535,171 1,015,849 1,551,0202017-18 549,066 996,848 1,545,9142018-19 568,320 977,338 1,545,6582019-24 3,189,040 4,549,257 7,738,2972024-29 3,903,377 3,840,376 7,743,7532029-34 4,877,172 2,873,437 7,750,6092034-39 4,320,443 1,778,397 6,098,8402039-44 4,655,000 731,000 5,386,000

Total $ 23,457,904 $ 18,581,976 $ 42,039,880

Note 8: Interfund Receivables, Payables, and Transfers The composition of interfund balances as of June 30, 2014, was as follows: Due To/From Other Funds:

Receivable Fund Payable Fund Amount General

Designated Special Purpose Grants

$3,194,194

The General Fund has made payments on behalf of the Designated Special Purpose Grants Fund for

those grants funded on a reimbursement basis. Such amounts are generally repaid within 90 days of the fiscal year end.

Due To/From Primary Government and Component Units:

Receivable Entity Payable Entity Amount Component Unit Primary Government General Fund $98,545

Interfund transfers in the District are generally made to subsidize activities primarily accounted for in other funds.

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Note 9: Extraordinary Loss In September 2013, Colorado experienced heavy rains and flooding in various areas of the State.

Within Poudre School District’s boundaries, in the City of Laporte, two schools, Cache La Poudre Elementary School and Cache La Poudre Middle School, were significantly damaged. The District incurred expenditures of $2,008,553 as a result of the flooding. After insurance recoveries of $1,820,909, an $187,644 extraordinary loss has been recorded in the General Fund and within the governmental activities in the government-wide statement of activities.

Note 10: Employee Retirement Systems Defined Benefit Pension Plan – Public Employees’ Retirement Association (PERA)

Plan Description The District contributes to the School Division Trust Fund (SDTF), a cost-sharing multiple-employer

defined benefit pension plan administered by the Public Employees’ Retirement Association of Colorado (PERA). SDTF provides retirement and disability benefits, annual benefit increases, and death benefits for members or their beneficiaries. All employees of the District are members of the SDTF. Established in 1931, Colorado PERA operates by authority of the Colorado General Assembly and is administered under Title 24, Article 51, of the Colorado Revised Statutes. PERA issues a publicly available annual financial report that includes financial statements and required supplementary information for SDTF and its health care fund (see the following section). That report may be obtained through the Colorado PERA website www.copera.org, by writing to PERA of Colorado, 1300 Logan Street, Denver, Colorado 80203, or by calling PERA’s InfoLine at 1-800-759-PERA (7372) or Denver metro area (303) 837-6250.

Funding Policy Plan members and the District are required to contribute at a rate set by statute. The contribution

requirements of plan members and the District are established under C.R.S. 24-51-4. The contribution rate at June 30, 2014, for members is 8.00% and for the District is 17.45% of covered salary. The rate changed from 16.55% to 17.45% on January 1, 2014. A portion of the District’s contribution (1.02% of covered salary) is allocated for the health care fund (see the following section).

The District’s contributions for the years ending June 30, 2014, 2013, and 2012 were $24,060,465;

$21,878,643; and $19,894,581, respectively, equal to their required contributions for each year. The contribution rates for members were 8.00% for all three years. The District’s contribution rates were as follows during each of these fiscal years: July through December 2009—12.95%, January through December 2010—13.85%, January through December 2011—14.75%, January through December 2012—15.65%, January through December 2013—16.55%, and January through June 2014—17.45%.

Post-Employment Healthcare Benefits

Plan Description The District contributes to the Health Care Fund (HCF), a cost-sharing multiple-employer post-

employment healthcare plan administered by PERA. The HCF provides a health care premium subsidy to PERA participating benefit recipients and their eligible beneficiaries. C.R.S. 24-51-12 assigns the authority to establish the HCF benefit provisions to the State Legislature. PERA issues a publicly available annual financial report that includes financial statements and required supplementary information for the HCF (see the previous section).

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Note 10: Employee Retirement Systems (Continued) Funding Policy The District is required to contribute at a rate of 1.02% of covered salary for all PERA members as set

by statute. No member contributions are required. The contribution requirements for the District are established under C.R.S. 24-51-4. The apportionment of the contribution to the health care fund is established under C.R.S. 24-51-208. The District’s contributions to HCF for the years ending June 30, 2014, 2013, and 2012 were $1,443,374; $1,385,785; and $1,334,630, respectively, equal to their required contributions for each year. The rates for all three years were 1.02% of covered salary.

PERA Voluntary Investment Program

Plan Description The SDTF participants of the District may voluntarily contribute to the Voluntary Investment Program

(VIP), an Internal Revenue Code Section 401(k) defined contribution plan administered by PERA. Plan participation is voluntary, and contributions are separate from others made to PERA. C.R.S. 24-51-14 assigns the authority to establish the VIP provisions to the State Legislature.

Funding Policy The VIP is funded by voluntary participant contributions of up to a maximum limit set by the IRS

($17,000 in 2012, $17,500 in 2013 and $17,500 in 2014). The contribution requirements for the District are established under C.R.S. 24-51-1402. The VIP member contributions from the District for the year ended June 30, 2014, were $2,096,417.

Deferred Compensation Plan

The District has adopted a deferred compensation plan established under Section 457 of the Internal Revenue Code. This plan is open to all District employees.

The assets under this plan are not considered property of the District and are held in a custodial

account for the exclusive benefit of the plan participants and their beneficiaries. The District has little administrative involvement and does not perform the investing function.

Note 11: Risk Management

Insurance Coverage The following is a summary of major outside insurance coverage and their insurance limits:

Type of Coverage Deductible Occurrence in Millions Premium

Property damage 100,000$ Repl. Value Repl. Value 319,961$ School entity liability 100,000 5,000,000$ 5$ 145,068 Business vehicles - liability 10,000 5,000,000 5 111,299 Workers' compensation - excess 500,000 Statutory Statutory 86,284 Fidelity bond 25,000 2,000,000 2 7,395

670,007$

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Note 11: Risk Management (Continued)

The District had no significant reductions in insurance coverage from coverage in the prior year and had no settlements that exceeded insurance coverage for each of the past three fiscal years.

Workers' Compensation Self-Insurance The District is self-insured for Workers' Compensation up to a loss per claim limit of $500,000. Total

Workers' Compensation costs to the District for the period July 1, 2013, through June 30, 2014, irrespective of the actual date of injury, was $838,456. These costs include medical, indemnity, light duty, legal and state annual and semi-annual self-insurance fees.

Property Self-Insurance The District self-insures property damage up to the deductible limit of $100,000 per claim. Total costs

for property self-insurance, including policy premiums and claims reimbursed to schools and other District sites for property loss or damage during the fiscal year ended June 30, 2014, were $677,347.

Employee Self-Insurance Fund

Employee Health and Dental Program The District has established a self-funded program which provides covered employees and, in certain

cases, eligible dependents, with medical, dental and life benefits. The District contributes, on behalf of its full-time employees, sufficient amounts to provide for medical

and dental benefits defined by the plan. Employees may elect to include eligible dependents under the plan at their own expense. Contributions are determined annually based on previous experience and with the assistance of an outside consultant. The amounts contributed by the District for the fiscal year ended June 30, 2014, for health and dental benefits were $13,525,463 and $1,472,833, respectively.

Medical Medical benefits are determined by the selection of Preferred Provider Organization (PPO), Exclusive

Provider Organization (EPO), High Deductible Health Plan (HDHP) or Hospital Income Plan (HIP).

Current provisions of the PPO-1 plan provide benefits subject to an out-of-pocket maximum of $2,000 per individual or $4,000 per family. The plan contains a 25% co-insurance feature for in-network providers. The plan provides benefits subject to an out-of-pocket maximum of $5,000 per individual or $10,000 per family for out-of-network providers, with a 50% co-insurance feature.

Current provisions of the PPO-2 plan provide benefits subject to an out-of-pocket maximum of $5,000 per individual or $10,000 per family. The plan contains a 25% co-insurance feature for in-network providers. The plan has no provision for out-of-network providers.

Current provisions of the EPO plan provide that the participant must utilize the services of a primary care physician for all care and/or referrals to specialists. Services are generally provided for a $35 co-payment per office visit. In-patient hospital services are paid in full after a $500 co-payment and out-patient hospital services are paid in full after a $300 co-payment. Current provisions of the HDHP provide benefits subject to an out-of-pocket maximum of $8,000 per individual or $16,000 per family. The plan contains a 25% co-insurance feature for in-network providers. The plan has no provision for out-of-network providers.

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Note 11: Risk Management (Continued)

Employees with full benefits may select the HIP. This plan is designed for those full-time employees who choose to have health coverage elsewhere. The HIP provides up to $1,000 per day for otherwise un-reimbursed medical expenses for in-hospital confinement at an approved, licensed hospital.

The District has purchased stop-loss coverage with a private insurer that covers qualified medical expenses, including transplants, in excess of $300,000 per claim. The cost of the stop-loss coverage was $835,091 for the fiscal year ended June 30, 2014.

Dental The current dental plan provides benefits to covered individuals as follows:

Life Eligible employees are automatically enrolled in a basic life insurance policy in the amount of

$50,000. All life insurance is purchased through an outside insurance carrier with the District currently paying $7.15, per month per employee for the majority of the District’s employees. Contributions by the District for life insurance for the year ended June 30, 2014, were $267,755.

DeductiblePer Person/ Employee

Type of Coverage Per Family Co-Insurance* Maximum Benefit*

Diagnostic & Preventive Services None 0% $1,500 per patient per plan year, combined benefitBasic Services None 20% $1,500 per patient per plan year, combined benefitImplant Services None 20% $3,000 per patient lifetime maximumMajor Services $50/$100 50% $1,500 per patient per plan year, combined benefitOrthodontic Services $50/$100 50% $2,000 per patient lifetime maximumTemporomandibular Joint/ None 20% $1,200 per patient lifetime maximum

Myofacial Pain Dysfunction*Within the scheduled allowable amounts

There is no outside stop-loss coverage purchased by the District regarding dental benefits.

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Note 11: Risk Management (Continued)

Liability for Unsubmitted Claims

Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of pay-outs and other economic and social factors. The carrying amount of claim liabilities are stated at anticipated cost for claims expected to be paid during the next year. Changes in the balances of claims liabilities during the past year are as follows:

Note 12: Reconciliation of Budgetary to GAAP Basis

The following schedule presents comparisons of General Fund actual data on the legally adopted

budget basis (more fully described in Note 1) and GAAP basis (generally accepted accounting principles). Budgets for salaries are adopted on a cash basis, in accordance with Colorado Revised Statutes, and accrued salaries, benefits and related liabilities are not considered in computing fund balance. GAAP basis financial statements require reporting of a liability for accrued salaries and reporting salary expenditures on the accrual basis.

The General Fund revenues, expenditures and fund balance for the fiscal year ended June 30, 2014,

differ significantly from budgetary to GAAP basis due to the following timing differences:

Actual (Non- ActualGAAP Budgetary Timing (GAAP

Basis) Difference Basis)

Total revenues and other financing sources $ 224,264,962 $ — $ 224,264,962

Total expenditures and other financing uses 221,937,093 331,081 222,268,174

Excess of revenues and other sourcesover expenditures and other uses 2,327,869 (331,081) 1,996,788

Extraordinary loss (187,644) — (187,644)

Fund balance at beginning of year 64,158,797 (11,392,812) 52,765,985

Fund balance at end of year $ 66,299,022 $ (11,723,893) $ 54,575,129

Claims andBalance Changes in Claims BalanceJuly 1 Estimates Paid June 30

General Fund - 2014 1,100,000$ 690,246$ 627,246$ 1,163,000$ General Fund - 2013 1,100,000 497,276 497,276 1,100,000 Employee Self-Insurance Fund - 2014 5,510,000 18,958,728 20,044,695 4,424,033 Employee Self-Insurance Fund - 2013 5,905,000 18,854,076 19,249,076 5,510,000

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Note 13: Commitments and Contingencies

Arbitrage

The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of investment income received at yields that exceed the issuer’s tax-exempt borrowing rates. The Treasury requires payment for each issue every five years. The estimated liability is updated annually for any tax-exempt issuances or changes in yields until such time payment of the calculated liability is due. At June 30, 2014, the District had no liability for arbitrage.

Grants

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the District expects such amounts, if any, to be immaterial.

Lawsuits

The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District’s management, based upon consultation with the District's attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the District.

Revenue Limitations and Restriction of Fund Balance

The State of Colorado enacted a constitutional amendment effective December 31, 1992, to limit increases in government revenues. The limitation generally restricts growth in revenue of a governmental entity (excluding enterprise operations) to a base amount plus increases for growth and inflation. In addition, the amendment requires government entities to create an emergency “reserve” of 3% of annual spending excluding bonded debt service. On November 3, 1998, voter approval was given to the District to remove the restriction on growth in revenue effective beginning the fiscal year ending June 30, 1998. At June 30, 2014, the District has complied with the requirements to include emergency reserves in its budgetary basis fund balance.

69

Note 14: Prior Period Adjustment The District implemented GASB Statement No. 65, Items Previously Reported as Assets and

Liabilities during the fiscal year ended June 30, 2014. In accordance with GASB 65, debt issuance costs should be recognized as expenses in the period incurred. Previously, debt issuance costs were recorded as assets and amortized over the life of the debt. The implementation of GASB 65 resulted in the following prior period adjustment to the net position of the governmental activities:

Net position – beginning of the year:

Note 15: Subsequent Events

Poudre School District’s Board of Education approved a new charter school, Fort Collins Montessori School, on May 13, 2014. In fall 2014, this school began its first year of operation with a student enrollment of approximately 40 funded pupils. The school opened as a pre-kindergarten through third grade school with plans to add one grade per year through ninth grade in 2020. The mission of Fort Collins Montessori School is to provide a classic pre-kindergarten through ninth grade Montessori program that inspires and empowers children with an exceptional educational experience based on the principles and philosophy of Dr. Maria Montessori. The concepts of the “whole-child,” “mixed-age groupings,” family involvement, and community are integral to this educational approach and will be keystones at Fort Collins Montessori School.

In September 2014, the District issued $37,655,000 in General Obligation Refunding Bonds to provide funds to (1) refund a portion of the District’s General Obligation Refunding Bonds, Series 2004B, maturing on and after December 15, 2018, in the aggregate principal amount of $42,525,000 and (2) pay the costs of issuing the Bonds. The Refunding Bonds true interest cost is 1.89%, and the net present-value savings is $6,802,837.

On May 9, 2014, the Financial Policies and Procedures (FPP) Committee approved the following recommendation: In order to align the compliance, accounting, and reporting of the federal grant program that is the food service fund, the required basis of accounting to be used by the food service fund shall be the modified accrual basis of accounting, and such fund shall be isolated as a special revenue fund effective for the fiscal year beginning July 1, 2014 and beyond. In accordance with this decision, Poudre School District began reporting the Food Service Fund as a special revenue fund effective July 1, 2014.

Governental Activities: As originally presented $ 157,154,433 Adjustment (1,636,038)

As restated $ 155,518,395

Component units: As originally presented $ 7,528,954 Adjustments (275,170)

As restated $ 7,253,784

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RequiredSupplementaryInformationBudget-to-actual information found in thissection of the document for the District’sgeneral fund and major special revenue fundare required to be included as requiredsupplementary information if it is not alreadypresented as part of the basic financialstatements.

Poudre School DistrictGeneral Fund

Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual (Non-GAAP Budgetary Basis)

For the Fiscal Year Ended June 30, 2014

Actual Variance with(Non-GAAP Final BudgetBudgetary Positive

Original Final Basis) (Negative)

Revenues:Local:

Property taxes $ 99,321,261 $ 99,158,634 $ 99,339,213 $ 180,579 Specific ownership taxes 9,480,810 10,064,247 10,272,642 208,395 Delinquent taxes and penalties

and interest on taxes 1,600,000 1,500,000 1,712,795 212,795 Interest on investments 130,000 50,000 236,037 186,037 Tuition 40,000 40,000 284,700 244,700 Building and other rental 350,000 350,000 329,449 (20,551) Athletic support 140,000 140,000 113,856 (26,144) Student fees 400,000 420,000 422,746 2,746 Services to charter schools 458,147 463,943 445,537 (18,406) Indirect costs 697,000 450,000 504,051 54,051 E-rate 325,000 230,000 211,529 (18,471) Cash in lieu of land 1,200,000 1,800,000 1,956,610 156,610 Other 560,000 560,000 763,754 203,754

Total local sources 114,702,218 115,226,824 116,592,919 1,366,095

State:Equalization 99,863,356 99,272,564 99,266,300 (6,264) Vocational education 637,295 637,295 739,717 102,422 Special education 4,483,277 4,219,454 4,284,015 64,561 Transportation 1,592,573 1,703,395 1,738,573 35,178 ELPA 272,853 272,853 282,384 9,531 Gifted and talented 258,606 254,141 254,141 — READ Act funding — — 283,762 283,762 Charter school capital construction — 173,461 181,672 8,211 Small attendance center 63,541 63,541 83,753 20,212 Other 25,000 25,000 83,286 58,286

Total state sources 107,196,501 106,621,704 107,197,603 575,899

Federal:National Forest Reserve Act 75,000 75,000 117,567 42,567

Total federal sources 75,000 75,000 117,567 42,567

Total revenues 221,973,719 221,923,528 223,908,089 1,984,561

Continued

Budgeted Amounts

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Poudre School DistrictGeneral Fund

Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual (Non-GAAP Budgetary Basis)

For the Fiscal Year Ended June 30, 2014(Continued)

Actual Variance with(Non-GAAP Final BudgetBudgetary Positive

Original Final Basis) (Negative)

Expenditures:Current—

Instruction $ 122,637,554 $ 123,546,442 $ 118,986,829 $ 4,559,613 Support services:

Students 12,743,788 12,510,750 12,353,817 156,933 Instructional staff 14,417,624 14,731,786 15,206,154 (474,368) General administration 2,714,839 2,689,528 2,719,259 (29,731) School administration 15,411,082 15,647,142 15,720,869 (73,727) Business 2,081,196 2,065,243 2,149,772 (84,529) Operation and maintenance of plant 20,642,511 19,086,672 20,751,145 (1,664,473) Student transportation 7,319,648 7,146,276 7,153,977 (7,701) Central 8,549,147 7,623,139 10,152,142 (2,529,003) Other 300,475 209,430 184,097 25,333

Food services operations — — 1,700 (1,700) Community services 102,172 184,668 170,529 14,139 Education for adults — — 41,784 (41,784) Facilities acquisition and construction 85,850 83,385 123,255 (39,870)

Total current expenditures 207,005,886 205,524,461 205,715,329 (190,868)

Capital outlay—Instruction 29,287 29,930 57,255 (27,325) Support services:

Students — — — — Instructional staff 475 — 12,636 (12,636) Operation and maintenance of plant 206,465 169,321 168,069 1,252 Student transportation 1,434,241 1,323,355 1,069,438 253,917 Central 169,932 538,445 207,856 330,589

Facilities acquisition and construction 42,889 44,152 — 44,152

Total capital outlay 1,883,289 2,105,203 1,515,254 589,949

Payments to charter schools 13,589,675 13,680,459 13,694,681 (14,222)

Operating contingencies 63,722,231 64,572,202 — 64,572,202

Total expenditures 286,201,081 285,882,325 220,925,264 64,957,061

Excess of revenues over (under) expenditures (64,227,362) (63,958,797) 2,982,825 66,941,622

Other financing sources (uses):Proceeds from sale of assets — — 31,125 31,125 Transfers in 400,000 400,000 325,748 (74,252) Transfers (out) (400,000) (400,000) (1,011,829) (611,829)

Total other financing (uses) — — (654,956) (654,956)

Net change in fund balance (64,227,362) (63,958,797) 2,327,869 66,286,666

Extraordinary loss — (200,000) (187,644) 12,356

Fund balances at beginning of year 64,227,362 64,158,797 64,158,797 —

Fund balances at end of year $ — $ — $ 66,299,022 $ 66,299,022

Budgeted Amounts

72

Adjustments ActualActual from GAAP to (Non-GAAP(GAAP Non-GAAP BudgetaryBasis) Budgetary Basis Basis)

Revenues:Local:

Property taxes $ 99,339,213 $ — $ 99,339,213 Specific ownership taxes 10,272,642 — 10,272,642 Delinquent taxes and penalties

and interest on taxes 1,712,795 — 1,712,795 Interest on investments 236,037 — 236,037 Tuition 284,700 — 284,700 Building and other rental 329,449 — 329,449 Athletic support 113,856 — 113,856 Student fees 422,746 — 422,746 Services to charter schools 445,537 — 445,537 Indirect costs 504,051 — 504,051 E-rate 211,529 — 211,529 Cash in lieu of land 1,956,610 — 1,956,610 Other 763,754 — 763,754

Total local sources 116,592,919 — 116,592,919

State:Equalization 99,266,300 — 99,266,300 Vocational education 739,717 — 739,717 Special education 4,284,015 — 4,284,015 Transportation 1,738,573 — 1,738,573 ELPA 282,384 — 282,384 Gifted and talented 254,141 — 254,141 READ Act funding 283,762 — 283,762 Charter school capital construction 181,672 — 181,672 Small attendance center 83,753 — 83,753 Other 83,286 — 83,286

Total state sources 107,197,603 — 107,197,603

Federal:National Forest Reserve Act 117,567 — 117,567

Total federal sources 117,567 — 117,567

Total revenues 223,908,089 — 223,908,089

Continued

Poudre School District

Reconciling Schedule of Actual Revenues, Expenditures and Changes inFund Balances—GAAP Basis to Non-GAAP Budgetary Basis

For the Fiscal Year Ended June 30, 2014

General Fund

73

Poudre School DistrictGeneral Fund

Reconciling Schedule of Actual Revenues, Expenditures and Changes inFund Balances—GAAP Basis to Non-GAAP Budgetary Basis

For the Fiscal Year Ended June 30, 2014(Continued)

Adjustments ActualActual from GAAP to (Non-GAAP(GAAP Non-GAAP BudgetaryBasis) Budgetary Basis Basis)

Expenditures:Current—

Instruction $ 119,163,546 $ (176,717) $ 118,986,829 Support services:

Students 12,380,473 (26,656) 12,353,817 Instructional staff 15,267,520 (61,366) 15,206,154 General administration 2,719,822 (563) 2,719,259 School administration 15,787,707 (66,838) 15,720,869 Business 2,148,708 1,064 2,149,772 Operation and maintenance of plant 20,750,520 625 20,751,145 Student transportation 7,163,580 (9,603) 7,153,977 Central 10,152,554 (412) 10,152,142 Other 174,712 9,385 184,097

Food services operations 1,700 — 1,700 Community services 170,529 — 170,529 Education for adults 41,784 — 41,784 Facilities acquisition and construction 123,255 — 123,255

Total current expenditures 206,046,410 (331,081) 205,715,329

Capital outlay—Instruction 57,255 — 57,255 Support services:

Instructional staff support 12,636 — 12,636 Operation and maintenance of plant 168,069 — 168,069 Student transportation 1,069,438 — 1,069,438 Central 207,856 — 207,856

Total capital outlay 1,515,254 — 1,515,254

Charter school funding 13,694,681 — 13,694,681

Total expenditures 221,256,345 (331,081) 220,925,264

Excess of revenues over expenditures 2,651,744 331,081 2,982,825

Other financing sources (uses):Proceeds from sale of assets 31,125 — 31,125 Transfers in 325,748 — 325,748 Transfers (out) (1,011,829) — (1,011,829)

Total other financing (uses) (654,956) — (654,956)

Net change in fund balance 1,996,788 331,081 2,327,869

Extraordinary loss (187,644) — (187,644)

Fund balances at beginning of year 52,765,985 11,392,812 64,158,797

Fund balances at end of year $ 54,575,129 $ 11,723,893 $ 66,299,022

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Variance with Original and Final Budget

Final Budgeted Positive Amounts Actual (Negative)

Revenues:

Local sources $ 800,000 $ 235,958 $ (564,042) State sources 1,500,000 452,623 (1,047,377) Federal sources 17,000,000 12,687,500 (4,312,500)

Total revenues 19,300,000 13,376,081 (5,923,919)

Expenditures:Current—

Instruction 10,479,384 7,154,077 3,325,307 Support services:

Students 3,706,082 3,005,410 700,672 Instructional staff 3,314,204 2,259,522 1,054,682 School administration 16,900 42,688 (25,788) Business 642,182 558,578 83,604 Operation and maintenance

of plant 530,946 43,263 487,683 Student transportation 127,832 40,194 87,638 Central 53,328 20,557 32,771

Community services 429,142 246,992 182,150

Total current expenditures 19,300,000 13,371,281 5,928,719

Capital outlay—Support services:

Operation and maintenanceof plant — 4,800 (4,800)

Total capital outlay — 4,800 (4,800)

Total expenditures 19,300,000 13,376,081 5,923,919

Net change in fund balance — — —

Fund balance at beginning of year — — —

Fund balance at end of year $ — $ — $ —

Poudre School DistrictDesignated Special Purpose Grants FundSchedule of Revenues, Expenditures and

For the Fiscal Year Ended June 30, 2014Changes in Fund Balance—Budget and Actual

75

Variance withOriginal and Final Budget

Final Budgeted PositiveAmounts Actual (Negative)

Revenues:Local sources—

Interest on investments $ 20,000 $ — $ (20,000) Other local sources 10,700,000 10,368,510 (331,490)

Total revenues 10,720,000 10,368,510 (351,490)

Expenditures:Current—

Instruction 10,462,414 10,240,819 221,595 Support services:

Students 361,168 307,356 53,812 Instructional staff 207,733 217,791 (10,058) General administration 68,312 62,000 6,312 School administration 456,571 387,807 68,764 Business 274 271 3 Operation and maintenance of plant 90,864 39,429 51,435 Student transportation 2,279 1,825 454 Central 65,060 46,110 18,950 Other 2,534 150 2,384

Food services operations 4,160 3,805 355 Community services 5,055 832 4,223

Total current expenditures 11,726,424 11,308,195 418,229

Capital outlay — 62,130 (62,130) Contingency 5,608,346 — 5,608,346

Total expenditures 17,334,770 11,370,325 5,964,445

(Deficiency) of revenues over (under) expenditures (6,614,770) (1,001,815) 5,612,955

Other financing sources (uses):Transfers in 1,500,000 1,011,829 (488,171) Transfers (out) (273,576) (325,748) (52,172)

Total other financing sources 1,226,424 686,081 (540,343)

Net change in fund balance (5,388,346) (315,734) 5,072,612

Fund balances at beginning of year 5,388,346 5,498,867 110,521

Fund balances at end of year $ — $ 5,183,133 $ 5,183,133

Poudre School District

For the Fiscal Year Ended June 30, 2014

Public School Activities Special Revenue FundSchedule of Revenues, Expenditures

and Changes in Fund Balances—Budget and Actual

76

Note 1: Budgets and Budgetary Accounting Annual budgets are established for all funds of the District as required by Colorado statutes. Budgets

for all funds are adopted on a basis consistent with generally accepted accounting principles, except in the General Fund where salaries and benefits are budgeted on a cash basis. Colorado statutes allow cash basis budgeting for salaries and benefits, eliminating the need to fund accrued salaries, benefits and related liabilities in the current year. See Note 11 for budgetary basis to GAAP reconciliation for the General Fund.

Each Board of Education shall adopt an annual budget on or before June 30. If, after adoption of the

budget, the District receives unanticipated revenues or revenues not assured at the time of the adoption of the budget from any source other than the local government’s property tax mill levy, the Board of Education may authorize the expenditure of such funds by enacting a supplemental budget and appropriation.

Budget amounts included in the financial statements are based on the final budget as adopted by the Board of Education on January 28, 2014. Original budgets for all funds were adopted by the Board of Education on June 11, 2013.

Budget appropriations lapse at the end of each fiscal year. The following is a summary of the significant dates and procedures used in establishing budgeted

data reflected in the financial statements: • On or before May 31, the Budget Manager (not an elected official) submits to the Board of

Education a proposed budget for the succeeding fiscal year.

• Within ten days after submission of the proposed budget, public notice is published stating the time and place of public hearing(s) to be conducted to obtain taxpayer comments on the budget prior to adoption.

• On or before June 30, the budget is adopted by formal resolution.

• November 10, pupil count information is provided by school districts to the Colorado Department of Education, for use in determining the state funding level for the current fiscal year.

• December 15, school districts certify to county commissioners, copied to CDE, the mill levies for the various property tax-supported funds of the District.

77

SupplementaryInformationInformation included in this SupplementaryInformation Section of the document isdesigned to further explain and support thefinancial statements, including combiningschedules. Also included in this section isbudget-to-actual information for all funds ofthe District, as required by state law (exceptfor the District’s general fund and majorspecial revenue funds which are included inthe Required Supplementary InformationSection).

Fund Information

Major Governmental Funds Debt Service—Bond Redemption Fund This fund is used to account for the payment of interest and principal on bond issues previously approved by the taxpayers. Revenues from this fund are received from a separate mill levy for local property taxes. Capital Projects—Building Fund The Building Fund is used to account for proceeds from bond sales. Primary expenditures relate to improving, equipping, and furnishing district buildings and other property.

Enterprise Fund—Food Service

The Food Service Fund is used to account for the District’s food service program. The District provides meals to students. User charges (lunch sales) are the primary source of revenue in this fund.

Internal Service Funds

Employee Self-Insurance Fund This fund is used to account for the funding and administration of employee health and dental benefits and life insurance. The District contributes, on behalf of its employees, sufficient amounts to offset claim and administrative costs of the benefit plan. Employees also may elect to include eligible dependents under the plan at their own expense. Warehouse Fund This fund is used to account for revenues and costs associated with providing warehouse services for general supplies to schools, other District sites, and other school and governmental entities.

Private-Purpose Trust Fund

Money held in trust by the District from donations by individuals and organizations is accounted for in this fiduciary fund. The primary purpose of the trusts accounted for in this fund is to provide scholarships.

78

Variance withFinal Budget

PositiveOriginal Final Actual (Negative)

Revenues:Local sources—

Property taxes $ 27,909,157 $ 26,908,729 $ 26,432,285 $ (476,444) Delinquent taxes and penalties

and interest on taxes — — 501,113 501,113 Other revenue — — 100 100

Federal sources—Build America Bonds Subsidy 1,123,226 1,123,226 1,042,354 (80,872)

Total revenues 29,032,383 28,031,955 27,975,852 (56,103)

Expenditures:Debt service—

Purchased services 4,350 4,350 3,850 500 Interest on debt 11,979,216 11,979,216 11,979,215 1 Retirement of bonds 17,805,839 17,805,839 17,805,839 — Payment to escrow agent — — — —

Total debt service 29,789,405 29,789,405 29,788,904 501

Contingency 35,694,137 34,150,160 — 34,150,160

Total expenditures 65,483,542 63,939,565 29,788,904 34,150,661

Net change in fund balance (36,451,159) (35,907,610) (1,813,052) 34,094,558

Fund balance at beginning of year 36,451,159 35,907,610 35,907,610 —

Fund balance at end of year $ — $ — $ 34,094,558 $ 34,094,558

For the Fiscal Year Ended June 30, 2014

Poudre School DistrictDebt Service—Bond Redemption Fund

Schedule of Revenues, Expenditures andChanges in Fund Balances—Budget and Actual

Budgeted Amounts

79

Poudre School DistrictCapital Projects Building Fund

Variance withOriginal and Final Budget

Final Budgeted PositiveAmounts Actual (Negative)

Revenues:Local sources—

Interest on investments $ 60,000 $ 170,258 $ 110,258

Total revenues 60,000 170,258 110,258

Expenditures:Current—

Instruction 1,671,425 166,520 1,504,905 Support services:

Operation and maintenance of plant 1,134,890 1,668,079 (533,189) Central 525,604 399,184 126,420

Food services operations 72,767 50,823 21,944 Facilities acquisition and construction 859,282 1,304,930 (445,648)

Total current expenditures 4,263,968 3,589,536 674,432

Capital outlay—Support services:

Operation and maintenance of plant 98,159 208,937 (110,778) Central 21,169 88,442 (67,273)

Food services operations 33,632 74,344 (40,712) Facilities acquisition and construction 9,798,072 12,070,034 (2,271,962)

Total capital outlay 9,951,032 12,441,757 (2,490,725)

Contingency 23,650,029 — 23,650,029

Total expenditures 37,865,029 16,031,293 21,833,736

(Deficiency) of revenues (under) expenditures (37,805,029) (15,861,035) 21,943,994

Net change in fund balance (37,805,029) (15,861,035) 21,943,994

Fund balance at beginning of year 37,805,029 36,457,675 (1,347,354)

Fund balances at end of year $ — $ 20,596,640 $ 20,596,640

Schedule of Revenues, Expendituresand Changes in Fund Balances—Budget and Actual

For the Fiscal Year Ended June 30, 2014

80

Poudre School DistrictEnterprise Fund—Food Service

Schedule of Revenues, Expenses andChanges in Fund Net Position—Budget and Actual

For the Fiscal Year Ended June 30, 2014

Variance withOriginal and Final Budget

Final Budgeted PositiveAmounts Actual (Negative)

Operating revenues:Sales $ 3,175,000 $ 3,276,336 $ 101,336

Total operating revenues 3,175,000 3,276,336 101,336

Operating expenses:Salaries and benefits 3,025,000 3,110,083 (85,083) Food expense 4,080,000 4,147,035 (67,035) Non-food expense 394,700 255,354 139,346 Utilities 361,700 339,993 21,707 Purchased services 243,600 172,488 71,112 Depreciation — 63,175 (63,175) Internal charges — 237 (237) Other — 3,168 (3,168) Contingency 2,169,882 — 2,169,882

Total operating expenses 10,274,882 8,091,533 2,183,349

Operating (loss) (7,099,882) (4,815,197) 2,284,685

Non-operating revenues:State sources 110,000 112,044 2,044 Federal sources:

National School Lunch 4,100,000 4,013,854 (86,146) USDA donated commodities 425,000 389,915 (35,085)

Interest on investments 5,000 2,971 (2,029)

Total non-operating revenues 4,640,000 4,518,784 (121,216)

Change in net position (2,459,882) (296,413) 2,163,469

Total net position at beginning of year 2,459,882 2,431,887 (27,995)

Total net position at end of year $ — $ 2,135,474 $ 2,135,474

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Poudre School DistrictInternal Service Funds

Combining Statement of Net PositionJune 30, 2014

InternalService

Employee FundsSelf-Insurance Warehouse Total

ASSETS

Current assets:Cash and investments $ 19,206,328 $ 163,436 $ 19,369,764 Cash - restricted 168,962 — 168,962 Accounts receivable 147,193 — 147,193 Prepaid deposit 12,802 100 12,902 Inventory — 365,615 365,615

Total current assets 19,535,285 529,151 20,064,436

Noncurrent assets:Capital assets:

Equipment — 28,500 28,500 Less accumulated depreciation — (28,500) (28,500)

Total capital assets (net of accumulated depreciation) — — —

Total assets 19,535,285 529,151 20,064,436

LIABILITIES

Current liabilities:Accounts payable 793,704 53,860 847,564 Estimated liability for

unsubmitted claims 4,424,033 — 4,424,033

Total current liabilities 5,217,737 53,860 5,271,597

Noncurrent liabilities:Employee compensated absences 12,211 5,222 17,433

Total noncurrent liabilities 12,211 5,222 17,433

Total liabilities 5,229,948 59,082 5,289,030

NET POSITION

Restricted for payment of claims 50,623 — 50,623 Unrestricted 14,254,714 470,069 14,724,783

Total net position $ 14,305,337 $ 470,069 $ 14,775,406

82

Poudre School DistrictInternal Service Funds

Combining Statement of Revenues, Expensesand Changes in Fund Net Position

For the Fiscal Year Ended June 30, 2014InternalService

Employee FundsSelf-Insurance Warehouse Total

Operating revenues:District Contributions $ 15,526,510 $ — $ 15,526,510 Employee Contributions 6,641,794 — 6,641,794 Sales — 1,045,237 1,045,237

Total operating revenues 22,168,304 1,045,237 23,213,541

Operating expenses:Administration:

Salaries 426,455 98,371 524,826 Employee benefits 114,609 32,941 147,550 Purchased services 1,363,920 2,770 1,366,690 Operating supplies 24,956 941,619 966,575 Internal charges 277 — 277

Claims 20,044,695 — 20,044,695 Premiums 1,549,367 — 1,549,367 Other 3,366 — 3,366

Total operating expenses 23,527,645 1,075,701 24,603,346

Operating income (loss) (1,359,341) (30,464) (1,389,805)

Non-operating revenues:Investment earnings 78,628 632 79,260

Total non-operating revenues 78,628 632 79,260

Change in net position (1,280,713) (29,832) (1,310,545)

Total net position at beginning of year 15,586,050 499,901 16,085,951

Total net position at end of year $ 14,305,337 $ 470,069 $ 14,775,406

83

Poudre School DistrictEmployee Self-Insurance Internal Service Fund

Schedule of Revenues, Expensesand Changes in Fund Net Position—Budget and Actual

For the Fiscal Year Ended June 30, 2014

Variance withFinal Budget

PositiveOriginal Final Actual (Negative)

Operating revenues:District contributions $ 16,200,000 $ 15,200,000 $ 15,526,510 $ 326,510 Employee contributions 8,200,000 6,500,000 6,641,794 141,794

Total operating revenues 24,400,000 21,700,000 22,168,304 468,304

Operating expenses:Administration:

Salaries 416,300 416,300 426,455 (10,155) Employee benefits 111,900 111,900 114,609 (2,709) Purchased services 1,331,400 1,331,400 1,363,920 (32,520) Operating supplies 24,400 24,400 24,956 (556) Internal charges 200 200 277 (77)

Claims 20,475,000 20,475,000 20,044,695 430,305 Premiums 1,512,500 1,512,500 1,549,367 (36,867) Other 3,300 3,300 3,366 (66) Contingency 15,264,625 13,488,050 — 13,488,050

Total operating expenses 39,139,625 37,363,050 23,527,645 13,835,405

Operating income (loss) (14,739,625) (15,663,050) (1,359,341) 14,303,709

Non-operating revenues:Investment earnings 77,000 77,000 78,628 1,628

Total non-operating revenues 77,000 77,000 78,628 1,628

Change in net position (14,662,625) (15,586,050) (1,280,713) 14,305,337

Total net position at beginning of year 14,662,625 15,586,050 15,586,050 —

Total net position at end of year $ — $ — $ 14,305,337 $ 14,305,337

Budgeted Amounts

84

Poudre School DistrictWarehouse Internal Service FundSchedule of Revenues, Expenses

and Changes in Fund Net Position—Budget and ActualFor the Fiscal Year Ended June 30, 2014

Variance withOriginal and Final Budget

Final Budgeted PositiveAmounts Actual (Negative)

Operating revenues:Sales $ 1,040,000 $ 1,045,237 $ 5,237

Total operating revenues 1,040,000 1,045,237 5,237

Operating expenses:Administration:

Salaries 93,000 98,371 (5,371) Employee benefits 33,000 32,941 59 Purchased services 4,000 2,770 1,230 Operating supplies 910,000 941,619 (31,619) Internal charges — — — Other — — —

Contingency 514,098 — 514,098

Total operating expenses 1,554,098 1,075,701 478,397

Operating (loss) (514,098) (30,464) 483,634

Non-operating revenues:Investment earnings 600 632 32

Total non-operating revenues 600 632 32

Change in net position (513,498) (29,832) 483,666

Total net position at beginning of year 513,498 499,901 (13,597)

Total net position at end of year $ — $ 470,069 $ 470,069

85

Poudre School DistrictInternal Service Funds

Combining Statement of Cash FlowsFor the Fiscal Year Ended June 30, 2014

EmployeeSelf-

Insurance Warehouse Total

Cash flows from operating activities:Received from customers $ 22,036,728 $ 1,045,237 $ 23,081,965 Payments to employees (548,202) (129,191) (677,393) Payments to suppliers for goods and services (1,076,708) (956,335) (2,033,043) Payments for claims and insurance (22,680,029) — (22,680,029) Payments to other funds (277) — (277)

Net cash used by operating activities (2,268,488) (40,289) (2,308,777)

Cash flows from investing activities:Interest received 78,628 632 79,260

Net cash provided by investing activities 78,628 632 79,260

Net decrease in cash and cash equivalents (2,189,860) (39,657) (2,229,517)

Cash and cash equivalents at beginning of year 21,565,150 203,093 21,768,243

Cash and cash equivalents at end of year $ 19,375,290 $ 163,436 $ 19,538,726

Reconciliation of operating loss to net cash usedby operating activities:

Operating loss $ (1,359,341) $ (30,464) $ (1,389,805) Adjustments to reconcile operating loss to

net cash used by operating activities:Accounts receivable (131,576) — (131,576) Prepaid expense 136,013 — 136,013 Inventory — (47,624) (47,624) Accounts payable 179,521 35,678 215,199 Employee compensated absences (7,138) 2,121 (5,017) Estimated liability for unsubmitted claims (1,085,967) — (1,085,967)

Net cash used by operating activities $ (2,268,488) $ (40,289) $ (2,308,777)

86

Poudre School DistrictPrivate-Purpose Trust Fund

Schedule of Changes in Fiduciary Net Position—Budget and ActualFor the Fiscal Year Ended June 30, 2014

Variance withOriginal and Final Budget

Final Budgeted PositiveAmounts Actual (Negative)

ADDITIONS

Contributions:Private donations $ 150,000 $ 70,313 $ (79,687)

Interest earnings 1,250 1,094 (156)

Total additions 151,250 71,407 (79,843)

DEDUCTIONS

Payments in accordance with trust agreements 150,000 97,318 52,682 Contingency 381,853 — 381,853

Total deductions 531,853 97,318 434,535

Change in net position (380,603) (25,911) 354,692

Net position at beginning of year 380,603 370,113 (10,490)

Net position at end of year $ — $ 344,202 $ 344,202

87

StatisticalSectionThe statistical section is provided to reflectsocial and economic data, financial trendsand the fiscal capacity of the District.

Poudre School District Statistical Section

This part of the District’s Comprehensive Annual Financial Report (CAFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s overall financial health. Contents Tables Financial Trends

These schedules contain trend information to help the reader understand how the District’s financial performance and well-being have changed over time. I-IV

Revenue Capacity

These schedules contain information to help the reader assess the District’s most significant local revenue source, property tax. V-IX

Debt Capacity

These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt in the future. X-XII

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place. XIII-XIV

Operating Information

These schedules contain service and capital asset data to help the reader understand how the information in the District’s financial report relates to the services the District provides and the activities it performs. XV-XVIII

88

2014 2013 2012 2011

Governmental activitiesNet investment in capital assets $ 50,986,099 $ 45,419,623 $ 43,614,298 $ 37,691,167Restricted 50,899,116 50,722,325 47,722,851 56,620,442Unrestricted 57,355,476 61,012,485 61,034,007 55,507,549Total governmental activities net position $ 159,240,691 $ 157,154,433 $ 152,371,156 $ 149,819,158

Business-type activitiesNet investment in capital assets $ 431,892 $ 428,894 $ 274,726 $ 50,672Unrestricted 1,703,582 2,002,993 2,312,761 2,362,068Total business-type activities net position $ 2,135,474 $ 2,431,887 $ 2,587,487 $ 2,412,740

Primary governmentNet investment in capital assets $ 51,417,991 $ 45,848,517 $ 43,889,024 $ 37,741,839Restricted 50,899,116 50,722,325 47,722,851 56,620,442Unrestricted 59,059,058 63,015,478 63,346,768 57,869,617Total primary government net position $ 161,376,165 $ 159,586,320 $ 154,958,643 $ 152,231,898

Continued on next page

Fiscal Year

Table IPoudre School District

Net Position by Component(Accrual basis of accounting)

Last Ten Fiscal Years(Unaudited)

89

2010 2009 2008 2007 2006 2005

$ 30,979,145 $ 25,247,992 $ 21,305,501 $ 19,534,278 $ 18,622,656 $ 17,514,778 43,060,438 41,649,764 37,248,749 32,112,371 26,847,239 22,882,488 57,289,627 45,603,416 48,020,911 46,686,039 43,977,251 42,316,588

$ 131,329,210 $ 112,501,172 $ 106,575,161 $ 98,332,688 $ 89,447,146 $ 82,713,854

$ 65,632 $ 85,910 $ 82,356 $ 104,311 $ 131,331 $ 176,625 1,584,083 1,394,506 1,672,513 1,588,987 1,337,915 972,137

$ 1,649,715 $ 1,480,416 $ 1,754,869 $ 1,693,298 $ 1,469,246 $ 1,148,762

$ 31,044,777 $ 25,333,902 $ 21,387,857 $ 19,638,589 $ 18,753,987 $ 17,691,403 43,060,438 41,649,764 37,248,749 32,112,371 26,847,239 22,882,488 58,873,710 46,997,922 49,693,424 48,275,026 45,315,166 43,288,725

$ 132,978,925 $ 113,981,588 $ 108,330,030 $ 100,025,986 $ 90,916,392 $ 83,862,616

90

2014 2013 2012 2011

ExpensesGovernmental activities:

Instruction $ 146,846,816 $ 146,165,952 $ 136,611,274 $ 132,152,533 Support services Students 15,772,945 14,975,448 14,441,020 14,161,384 Instructional staff 17,782,490 16,134,084 15,959,911 15,648,388 General administration 2,798,230 2,645,082 2,585,270 2,679,711 School administration 16,296,488 15,621,363 14,037,045 13,588,419 Business 2,361,805 2,126,703 2,360,098 2,333,169 Operations and maintenance of plant 22,613,583 21,916,989 21,667,219 20,111,197 Student transportation 7,257,434 6,854,130 6,770,350 6,428,610 Central 17,686,921 13,774,881 17,306,811 15,565,647 Other 175,346 198,910 232,080 299,665 Food service operations 56,328 139,829 183,739 39,160 Other 3,144,226 3,427,451 5,396,697 2,373,119 Debt service 11,182,085 11,899,236 12,261,003 11,209,028 Contributions to Private Purpose Trust Fund — — — — Charter school funding 13,694,681 11,783,210 11,506,662 10,876,836

Total governmental activities expenses 277,669,378 267,663,268 261,319,179 247,466,866

Business-type activities:Food service operations 8,091,533 7,673,977 7,407,160 6,564,602

Total primary government expenses $ 285,760,911 $ 275,337,245 $ 268,726,339 $ 254,031,468

Program RevenuesGovernmental activities:

Charges for services Instruction $ 3,609,196 $ 3,173,314 $ 3,097,556 $ 2,957,620 Support services 7,243,889 6,694,130 6,737,420 6,728,928 Community services 164,724 158,716 131,520 117,193 Education for adults — — — — Operating grants and contributions Instruction 20,270,693 18,565,565 18,316,957 26,613,109 Support services 8,149,080 7,672,971 7,538,844 9,477,298 Food service operations 493 574 453 159 Community services 247,156 337,311 287,368 302,250 Education for adults — — 12 12 Other uses 1,042,354 1,074,366 1,123,226 546,018 Capital grants/restricted investment earnings Support services — — — — Facilities acquisition and construction 1,956,610 1,597,564 867,123 426,771

Total governmental activities program revenues 42,684,195 39,274,511 38,100,479 47,169,358

Continued on next page

Table IIPoudre School District

Changes in Net Position(Accrual basis of accounting)

Fiscal Year

Last Ten Fiscal Years(Unaudited)

91

2010 2009 2008 2007 2006 2005

$ 130,604,347 $ 130,790,934 $ 124,592,394 $ 118,734,278 $ 115,091,851 $ 113,443,405

14,364,960 13,300,548 11,543,592 10,693,205 10,463,872 9,888,380 15,347,485 13,998,883 12,319,608 12,394,520 11,265,975 10,912,975

3,019,637 2,858,297 2,959,541 2,650,551 2,463,329 2,517,480 14,137,445 13,471,551 13,149,356 12,159,210 11,673,187 11,217,196

2,474,295 2,489,433 2,355,738 2,025,598 2,078,420 2,062,962 21,284,032 23,634,584 23,223,047 23,017,770 21,923,471 21,014,095

6,972,476 7,206,812 7,793,333 7,061,266 6,454,383 5,938,247 12,585,177 14,380,076 13,119,658 11,968,481 12,353,038 14,289,952

356,253 596,064 466,945 409,933 360,375 404,495 39,173 42,612 135,173 232,214 236,544 125,889

2,465,839 2,573,668 2,972,764 2,928,892 2,853,139 2,754,747 9,858,073 8,331,059 12,626,141 13,218,320 13,829,048 12,912,969

— — — — — 3,435 9,182,166 8,563,579 8,184,578 9,375,082 8,568,796 7,576,745

242,691,358 242,238,100 235,441,868 226,869,320 219,615,428 215,062,972

6,474,067 6,440,740 5,854,745 5,303,454 5,128,988 4,976,347 $ 249,165,425 $ 248,678,840 $ 241,296,613 $ 232,172,774 $ 224,744,416 $ 220,039,319

$ 2,891,531 $ 2,522,029 $ 2,062,787 $ 2,101,174 $ 2,044,455 $ 1,903,353 6,072,773 7,275,920 7,417,938 7,047,381 7,518,970 9,456,370

144,743 109,018 194,703 119,141 154,878 126,189 21,149 33,630 47,086 55,243 72,574 54,569

19,398,546 19,052,381 18,977,364 18,055,846 17,202,046 15,996,223 9,116,593 6,435,027 5,845,234 6,026,142 5,383,419 5,096,025

63,224 30,602 20,176 5,593 1,096 8,614 305,657 210,300 310,164 345,798 356,922 327,522

— 7,145 11,593 9,283 6,548 4,826 — — 130,239 118,915 122,919 122,835

420,285 456,818 980 1,991 250,260 521,411 10,549 211,135 1,977,924 2,809,749 2,386,647 813,782

38,445,050 36,344,005 36,996,188 36,696,256 35,500,734 34,431,719

Continued on next page

92

2014 2013 2012 2011

Business-type activities:Charges for services - food services 3,276,336 3,019,987 3,287,904 3,405,656 Operating grants and contributions - food services 4,515,813 4,471,983 4,292,028 3,920,295

Total business-type activities program revenues 7,792,149 7,491,970 7,579,932 7,325,951Total primary government program revenues $ 50,476,344 $ 46,766,481 $ 45,680,411 $ 54,495,309

Net (Expense)/RevenueGovernmental activities $ (234,985,183) $ (228,388,757) $ (223,218,700) $ (200,297,508)Business-type activities (299,384) (182,007) 172,772 761,349Total primary government net expense $ (235,284,567) $ (228,570,764) $ (223,045,928) $ (199,536,159)

General Revenues and Other Changes in Net PositionGovernmental activities:

Taxes Property taxes, levied for general and debt purposes $ 127,400,081 $ 128,253,445 $ 124,105,741 $ 118,774,939 Specific ownership taxes 10,272,642 8,962,377 8,253,845 7,874,996Unrestricted earnings on investments 476,355 76,203 139,554 154,395Miscellaneous 1,448,621 1,385,386 1,177,008 1,667,291Gain/loss on asset disposal 31,125 277,465 13,041 657,386 Equalization 99,266,299 94,217,158 92,081,509 89,658,449Other state revenue — — — — Other local revenue — — — — Transfers — — — — Transfers to charter schools — — — — Unrestricted local revenue — — — —

Extraordinary item(1) (187,644) — — — Total governmental activities 238,707,479 233,172,034 225,770,698 218,787,456 Business-type activities:

Unrestricted earnings on investments 2,971 4,464 1,975 1,676 Gain/loss on asset disposal — 21,943 — — Miscellaneous — — — —

Total business-type activities 2,971 26,407 1,975 1,676Total primary government $ 238,710,450 $ 233,198,441 $ 225,772,673 $ 218,789,132

Change in Net PositionGovernmental activities 3,722,296 4,783,277 2,551,998 18,489,948Business-type activities (296,413) (155,600) 174,747 763,025Total primary government $ 3,425,883 $ 4,627,677 $ 2,726,745 $ 19,252,973

(1) Fiscal Year 2009 - loss on investment. Fiscal Year 2014 - Loss due to expenditures incurred related to flood. net of insurance recoveries.

Continued on next page

Last Ten Fiscal Years(Unaudited)

Fiscal Year

Table IIPoudre School District

Changes in Net Position(Accrual basis of accounting)

93

2010 2009 2008 2007 2006 2005

3,238,065 3,039,859 3,087,344 2,903,659 2,943,698 3,037,587 3,403,758 3,110,052 2,771,227 2,561,735 2,468,118 2,184,365 6,641,823 6,149,911 5,858,571 5,465,394 5,411,816 5,221,952

$ 45,086,873 $ 42,493,916 $ 42,854,759 $ 42,161,650 $ 40,912,550 $ 39,653,671

$ (204,246,308) $ (205,894,095) $ (198,445,680) $ (190,173,064) $ (184,114,694) $ (180,631,253) 167,756 (290,829) 3,826 161,940 282,828 245,605

$ (204,078,552) $ (206,184,924) $ (198,441,854) $ (190,011,124) $ (183,831,866) $ (180,385,648)

$ 115,327,587 $ 110,076,553 $ 108,381,515 $ 104,148,520 $ 101,569,951 $ 97,686,597 8,120,314 8,713,638 9,486,221 10,102,117 10,259,767 10,314,920

89,958 896,197 2,727,634 3,063,695 2,182,610 1,024,889 1,456,046 1,033,966 966,163 1,301,457 1,152,907 1,076,663

— — 10,774 15,198 (123,352) — 98,080,441 92,373,829 85,115,846 80,427,619 75,806,103 73,417,379

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — 847,404

— (1,274,077) — — — — 223,074,346 211,820,106 206,688,153 199,058,606 190,847,986 184,367,852

1,143 16,376 57,745 62,112 37,656 11,266 — — — — — —

400 — — — — — 1,543 16,376 57,745 62,112 37,656 11,266

$ 223,075,889 $ 211,836,482 $ 206,745,898 $ 199,120,718 $ 190,885,642 $ 184,379,118

18,828,038 5,926,011 8,242,473 8,885,542 6,733,292 3,736,599 169,299 (274,453) 61,571 224,052 320,484 256,871

$ 18,997,337 $ 5,651,558 $ 8,304,044 $ 9,109,594 $ 7,053,776 $ 3,993,470

94

2014 2013 2012 2011

General FundNonspendable $ 150,352 $ 463,730 $ 130,423 $ 446,248 Restricted 12,429,706 10,273,096 8,075,746 6,600,000 Committed — — — — Assigned 26,280,103 26,097,242 24,292,674 26,497,194 Unassigned 15,714,968 15,931,917 20,934,082 15,062,957

Total general fund $ 54,575,129 $ 52,765,985 $ 53,432,925 $ 48,606,399

All Other Governmental FundsNonspendable $ — $ — $ — $ — Restricted 59,270,732 77,423,345 68,964,950 103,562,038 Committed — — — — Assigned 603,599 440,807 316,075 671,148 Unassigned — — — —

Total all other governmental funds $ 59,874,331 $ 77,864,152 $ 69,281,025 $ 104,233,186

Fiscal Year

Table IIIPoudre School District

Fund Balance, Governmental Funds(Modified accrual basis of accounting)

Last Ten Fiscal Years(Unaudited)

95

2010 2009 2008 2007 2006 2005

$ 149,557 $ 91,817 $ — $ — $ — $ — 6,550,000 6,350,000 6,000,000 5,650,000 5,500,000 5,305,000

— — — — — — 18,679,227 18,083,697 15,882,317 11,715,831 12,107,637 12,074,477 11,382,004 5,993,344 9,576,710 10,172,206 8,209,138 8,052,144

$ 36,760,788 $ 30,518,858 $ 31,459,027 $ 27,538,037 $ 25,816,775 $ 25,431,621

$ — $ — $ — $ — $ — $ — 49,952,786 50,913,483 59,179,348 72,220,721 57,479,916 81,841,623

— — — — — — — — — — — — — — — — — —

$ 49,952,786 $ 50,913,483 $ 59,179,348 $ 72,220,721 $ 57,479,916 $ 81,841,623

96

2014 2013 2012 2011

Revenues: Local sources $ 154,301,143 151,084,387 151,525,792 141,239,188 State sources 107,650,226 101,245,687 99,353,409 96,692,010 Federal sources 13,847,421 13,592,823 13,683,806 23,790,808

Total revenues(1) 275,798,790 265,922,897 264,563,007 261,722,006

Expenditures: Instruction 136,724,962 138,325,096 128,565,305 124,625,333 Support services:

Students 15,693,239 15,115,703 14,463,459 14,246,425 Instructional staff 17,744,833 16,408,486 15,969,255 15,710,896 General administration 2,781,822 2,650,426 2,614,291 2,672,459 School administration 16,218,202 15,747,993 14,049,089 13,653,091 Business 2,707,557 2,455,558 2,312,025 2,633,495 Operation and maintenance of plant 22,501,291 22,041,500 28,954,631 21,458,935 Student transportation 7,205,599 6,939,291 6,781,484 6,488,231 Central 10,618,405 8,374,688 11,592,980 9,938,422 Other 174,862 200,342 233,093 303,011

Food service operations 56,328 139,829 183,739 39,160 Community services 418,353 519,052 465,782 475,662 Education for adults 41,784 — 67,861 89,688 Facilities acquisition and construction 1,428,185 1,645,370 3,479,795 378,752 Other uses — — — — Capital outlay 14,023,941 20,201,012 16,997,238 3,425,110 Debt service: Purchased services 3,850 362,850 3,600 445,629 Interest on debt 11,979,215 12,388,051 12,890,374 11,915,879 Retirement of debt 17,805,839 17,079,687 23,577,412 16,876,756

Payment to escrow agent — 58,764 — — Charter school funding 13,694,681 11,783,210 11,506,662 10,876,836

Total expenditures $ 291,822,948 292,436,908 294,708,075 256,253,770

Deficiency of revenues under expenditures $ (16,024,158) (26,514,011) (30,145,068) 5,468,236

(1) See Revenues by Source (Table IX) for greater detail.

Continued on next page

(Unaudited)

Fiscal Year

Table IVPoudre School District

Changes in Fund Balance, Governmental Funds(Modified accrual basis of accounting)

Last Ten Fiscal Years

97

2010 2009 2008 2007 2006 2005

135,547,025 $ 130,758,660 $ 133,202,475 $ 129,537,582 $ 126,213,331 $ 120,494,856105,355,912 99,711,428 91,948,486 87,650,453 82,088,561 79,183,79815,466,426 12,942,044 12,435,853 12,559,326 12,087,960 11,271,543

256,369,363 243,412,132 237,586,814 229,747,361 220,389,852 210,950,197

122,795,409 122,316,339 117,403,653 111,968,240 109,320,940 107,891,465

14,413,254 13,131,796 11,594,281 10,693,083 10,510,681 9,926,01115,391,931 13,936,890 12,381,341 12,394,795 11,313,325 10,973,0333,020,213 2,838,297 2,972,468 2,658,598 2,432,313 2,531,481

14,169,142 13,431,064 13,203,662 12,150,543 11,708,359 11,268,2602,620,759 2,283,836 2,157,221 1,927,608 1,928,508 2,078,913

22,553,761 23,537,186 23,251,547 21,488,006 20,463,946 19,594,5337,013,415 7,156,700 7,841,747 6,957,469 6,437,271 5,902,1607,454,872 9,002,722 8,102,985 5,556,401 5,560,441 5,828,433

361,226 595,064 463,976 423,313 357,536 396,94248,301 42,612 136,553 232,172 237,564 126,907

503,201 407,258 530,006 523,743 547,788 517,339103,077 89,599 97,031 90,524 84,150 59,812478,237 714,041 787,158 694,308 647,873 622,876

— 125,521 130,239 118,915 122,919 122,8353,752,726 6,342,667 12,423,430 18,830,957 23,603,297 13,090,277

38,587 325,719 6,100 7,100 256,368 1,206,31910,937,805 10,427,004 12,283,157 13,016,398 13,056,812 14,510,20516,262,705 16,410,000 15,305,000 11,015,000 10,395,000 7,460,090

— — — — — — 9,182,166 8,563,579 8,184,578 9,375,082 8,568,796 7,576,745

251,100,787 $ 251,677,894 $ 249,256,133 $ 240,122,255 $ 237,553,887 $ 221,684,636

5,268,576 $ (8,265,762) $ (11,669,319) $ (10,374,894) $ (17,164,035) $ (10,734,439)

Continued on next page

98

2014 2013 2012 2011

Other financing sources (uses): Proceeds from sale of assets $ 31,125 283,545 19,433 657,775 Accrued interest on bonds and

certificates of participation — — — — Premium on bonds and certificates of participation — 6,212,785 — — Proceeds from sale of bonds — 30,000,000 — 60,000,000 Proceeds from refunding bonds and

certificates of participation — 15,975,000 — — Payment to escrow agent — (18,041,132) — — Transfers in 1,337,577 1,404,916 1,474,942 1,324,327 Transfers (out) (1,337,577) (1,404,916) (1,474,942) (1,324,327) Transfers to capital reserve and

risk-related activities(2) — — — — Total other financing sources (uses) 31,125 34,430,198 19,433 60,657,775

Net change in fund balance before extraordinary item (15,993,033) 7,916,187 (30,125,635) 66,126,011

Extraordinary item (3) (187,644) — — —

Total net change in fund balance $ (16,180,677) 7,916,187 (30,125,635) 66,126,011

Debt service as a percentage of non-capital expenditures 10.72% 10.82% 13.13% 11.39%

(2) Beginning in fiscal year 2008, Risk-Related Activities became a sub fund of the General Fund, and the Capital Reserve Fundwas no longer statutorily required.

(3) Fiscal Year 2009 - loss on investment. Fiscal Year 2014 - Loss due to expenditures incurred related to flood damage,net of insurance recoveries.

Continued on next page

Fiscal Year

Table IVPoudre School District

Changes in Fund Balance, Governmental Funds(Modified accrual basis of accounting)

Last Ten Fiscal Years(Unaudited)

99

2010 2009 2008 2007 2006 2005

12,657 $ 16,648 $ 135,614 $ 24,050 $ 34,671 $ 416,340

— — — — — 187,752— 1,779,508 — — 6,261,900 7,997,557— — — — 19,999,466 —

— 41,770,000 — — — 116,065,000— (43,232,351) — — — (125,631,421)

4,849,205 1,199,721 1,101,762 1,188,961 1,258,587 1,032,295(4,849,205) (1,199,721) (1,101,762) (1,188,961) (1,258,587) (1,035,730)

— — — (3,187,089) (3,108,555) (3,011,060)12,657 333,805 135,614 (3,163,039) 23,187,482 (3,979,267)

5,281,233 (7,931,957) (11,533,705) (13,537,933) 6,023,447 (14,713,706)

— (1,274,077) — — — —

5,281,233 $ (9,206,034) $ (11,533,705) $ (13,537,933) $ 6,023,447 $ (14,713,706)

11.00% 10.94% 11.65% 10.86% 10.96% 10.53%

100

FiscalYear Taxes Levied Collections

Ended for the Percentage in Subsequent PercentageJune 30, Fiscal Year Amount of Levy Years Amount of Levy

2014 $ 128,012,376 $ 125,771,498 98.25 % $ — $ 125,771,498 98.25 %2013 128,277,687 125,753,595 98.03 2,213,908 125,753,595 98.032012 122,537,402 119,683,245 97.67 2,163,358 121,846,603 99.442011 120,422,776 116,293,034 96.57 3,765,114 120,058,148 99.702010 114,783,277 110,873,419 96.59 3,371,236 114,244,655 99.532009 111,188,436 106,907,720 96.15 3,274,333 110,182,053 99.092008 109,173,389 106,223,469 97.30 2,734,474 108,957,943 99.802007 104,321,381 102,013,856 97.79 2,158,046 104,171,902 99.862006 101,968,890 99,572,972 97.65 2,134,665 101,707,637 99.742005 97,920,034 95,765,575 97.80 1,996,979 97,762,554 99.84

Source: Larimer County Assessor's Office

Table VPoudre School District

Property Tax Levies and Collections Last Ten Fiscal Years

Taxes Levied for the Fiscal Year represent the net tax generated (gross tax less Downtown Development Authority tax incrementalfinance portion).

(Unaudited)

Total Tax Collections Collected within the

Fiscal Year of the Levy

101

Poudre School District RatesTotal Other Other

Fiscal General Debt Direct Larimer Fort Cities SpecialYear Fund Service Rate County Collins and Towns Districts

2014 41.672 11.091 52.763 22.424 9.797 42.590 345.7232013 42.256 12.430 54.686 22.520 9.797 42.766 335.7312012 40.861 11.339 52.200 22.472 9.797 42.766 334.9892011 38.881 12.119 51.000 22.524 9.797 42.766 325.8752010 35.286 12.703 47.989 22.435 9.797 42.756 323.3482009 35.384 12.605 47.989 22.395 9.797 42.756 316.9792008 35.595 12.605 48.200 22.414 9.797 42.833 226.2772007 37.160 13.555 50.715 22.410 9.797 43.202 226.6902006 37.715 13.000 50.715 22.541 9.797 42.681 226.5272005 40.178 12.318 52.496 22.517 9.797 43.930 198.434

Source: Larimer County Assessor's Office

(Unaudited)

Overlapping Rates

Table VIPoudre School District

Property Tax Rates (Mills) - All Direct and Overlapping GovernmentsLast Ten Fiscal Years

102

FiscalYear

Ended Residential Commercial Industrial VacantJune 30, Property Property Property Land Utilities Agriculture

2014 $ 1,318,731,350 $ 748,203,440 $ 249,042,560 $ 83,456,660 $ 75,306,200 $ 13,033,350 2013 1,319,008,640 749,681,480 252,080,580 83,298,710 75,306,200 13,030,990 2012 1,272,050,920 737,291,910 219,321,280 89,394,430 69,972,300 12,645,970 2011 1,274,007,290 741,309,410 230,742,710 127,072,140 64,699,340 11,946,770 2010 1,264,091,800 759,926,880 239,382,030 135,568,180 62,977,610 12,439,720 2009 1,231,701,870 704,737,820 244,746,340 134,857,360 60,811,850 13,265,120 2008 1,205,247,590 676,657,520 245,422,630 122,462,230 59,417,382 12,983,750 2007 1,135,091,600 574,126,460 213,338,460 108,839,070 51,166,920 11,889,470 2006 1,093,236,260 552,845,040 218,991,550 115,657,850 51,030,460 11,064,810 2005 1,011,702,790 508,001,370 209,532,280 102,279,640 48,449,800 10,306,710

TaxableFiscal Estimated Assessed Year Total Taxable Total Actual Value as a

Ended Natural Assessed Direct Taxable Percentage of

June 30, Resources Oil and Gas Value Rate(1)Value Actual Value

2014 $ 3,796,540 $ 5,220,255 $ 2,496,790,355 52.763 $ 20,618,814,547 12.11 %2013 3,797,240 5,220,255 2,501,424,095 54.686 19,896,867,909 12.572012 3,019,590 4,634,488 2,408,330,888 52.200 19,784,732,071 12.172011 2,844,750 2,119,840 2,454,742,250 51.000 20,072,516,406 12.232010 2,920,340 5,139,708 2,482,446,268 47.989 20,071,509,026 12.372009 4,007,900 4,139,524 2,398,267,784 47.989 19,487,920,503 12.312008 4,054,230 4,162,160 2,330,407,492 48.200 19,012,559,566 12.262007 3,709,230 3,571,475 2,101,732,685 50.715 17,585,767,684 11.952006 3,210,340 2,649,544 2,048,685,854 50.715 17,023,256,420 12.032005 3,296,870 2,125,575 1,895,695,035 52.496 15,753,550,352 12.03

(1) General fund and bond fund mill levies.

Source: Larimer County Assessor's Office

(Unaudited)

The actual value on residential properties is reappraised every two years in odd-numbered years to coincide with current market value. The assessment rate is also set every two years by the Colorado legislature. Currently nonresidential property is fixed at 29% of actual value and residential property is projected to be 7.96% of actual value.

Table VIIPoudre School District

Assessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years

103

Percentage PercentageTaxable of Taxable Taxable of Taxable

Assessed Assessed Assessed AssessedTaxpayer Valuation Rank Valuation Valuation Rank Valuation

Anheuser-Busch, Inc. $ 71,919,210 1 2.88 % $ 78,545,400 1 4.14 %Avago Technologies 60,299,180 2 2.42 — 0.00Ramco-Gershenson Properties LP 23,792,240 3 0.95 0.00Public Service Company of Colorado 22,380,800 4 0.90 10,733,380 6 0.57Qwest Corporation 20,488,400 5 0.82 20,056,800 4 1.06Hewlett Packard 20,014,930 6 0.80 22,299,920 3 1.18Amcap Harmony LLC 12,661,750 7 0.51 — 0.00New Belgium Brewery 11,307,510 8 0.45 — 0.00Walton Foothills Holdings 9,510,890 9 0.38 — 0.00BNSF Railway Center 8,200,600 10 0.33 — 0.00Agilent Technologies — — 31,691,650 2 1.67GGP-Foothills LLC — — 11,871,730 5 0.63F.C. Timberline Development — — 8,873,100 7 0.47LSI Logic (formerly Symbios Logic) — — 8,570,880 8 0.45Woodward Governor Company — — 5,522,680 9 0.29Comcast — — 5,521,810 10 0.29

Total $ 260,575,510 10.44 % $ 203,687,350 10.75 %

Source: Larimer County Assessor's Office

Table VIII

Percentage of Taxable Assessed Valuation based on Poudre School District 2013 gross assessed valuation of $2,496,790,355 (for taxes collected in 2014), and 2004 gross assessed valuation of $1,895,695,035 (for taxes collected in 2005), respectively.

20052014

Poudre School DistrictPrincipal Property Taxpayers

Current Fiscal Year and Nine Years Prior(Unaudited)

104

2014 2013 2012 2011

Revenues:Local: Property taxes $ 125,771,498 $ 125,753,595 $ 119,683,245 $ 116,293,034 Specific ownership taxes 10,272,642 8,962,377 8,253,845 7,874,996 Delinquent taxes and penalties and interest on taxes 2,213,908 2,163,358 3,765,114 3,371,236 Interest on investments 406,295 2,997 105,847 117,576 Tuition 284,700 52,972 54,430 39,925 Building and other rental 329,449 317,431 263,040 234,386 Athletic support 113,856 140,079 149,316 155,151 Student fees 422,746 395,533 393,897 407,045 Services to charter schools 445,537 369,152 365,537 380,034 Services to other districts/governments - - - - Indirect costs revenue 504,051 467,703 429,445 702,107 Other 13,536,461 12,459,190 18,062,076 11,663,698

Total local sources 154,301,143 151,084,387 151,525,792 141,239,188

Percent of total revenue provided by local sources 55.95% 56.82% 57.27% 53.97% Percent change in local source revenue 2.13% -0.29% 7.28% 4.20%

State: Equalization 99,266,300 94,217,158 92,081,509 89,658,449 Vocational education 739,717 625,412 646,205 574,597 Special education 4,284,015 3,718,717 3,688,982 3,751,521 Transportation 1,738,573 1,616,537 1,609,591 1,634,798 ELPA 282,384 266,701 238,756 231,220 Gifted and talented 254,141 253,784 247,250 241,813 READ Act Funding 283,762 — — — Small attendance center 83,753 63,541 64,511 67,739 Charter capital construction 181,672 146,583 131,099 — Textbook — — — — Other 535,909 337,254 645,506 531,873

Total state sources 107,650,226 101,245,687 99,353,409 96,692,010

Percent of total revenue provided by state sources 39.03% 38.07% 37.55% 36.94% Percent change in state source revenue 6.33% 1.90% 2.75% -8.22%

Federal: Medicaid — — — 18,734 National Forest Reserve Act 117,567 118,462 128,526 138,421 Other 13,729,854 13,474,361 13,555,280 23,633,653

Total federal sources 13,847,421 13,592,823 13,683,806 23,790,808

Percent of total revenue provided by federal sources 5.02% 5.11% 5.17% 9.09% Percent change in federal source revenue 1.87% -0.66% -42.48% 53.82%

Total revenues $ 275,798,790 $ 265,922,897 $ 264,563,007 $ 261,722,006

Most of the district's revenue is derived from local property taxes and state equalization. Grants and contributions also account for a largeportion of the district's revenue - grants and contributions are shown in the above table as Other Federal Sources.

Continued on next page

Fiscal Year

(Unaudited)

Table IXPoudre School District

Revenues by Source, Governmental Funds(Modified accrual basis of accounting)

Last Ten Fiscal Years

105

2010 2009 2008 2007 2006 2005

$ 110,709,895 $ 106,907,720 $ 106,223,469 $ 102,013,856 $ 99,572,972 $ 95,765,575 8,120,314 8,713,638 9,486,221 10,102,117 10,259,767 10,314,920 3,437,857 2,734,474 2,158,046 2,134,665 1,996,979 1,921,021

69,385 924,178 3,264,478 4,588,079 3,578,402 1,970,005 55,480 17,971 47,500 15,000 25,500 48,048

289,486 218,036 389,407 238,283 309,757 252,377 146,596 140,212 147,531 147,893 158,246 138,407 343,598 348,443 296,279 298,258 288,882 281,676 369,749 328,415 339,823 390,159 343,537 298,459

- 20,044 28,074 19,609 28,562 99,384 602,544 317,623 285,849 158,412 243,492 393,488

11,402,121 10,087,906 10,535,798 9,431,251 9,407,235 9,011,496

135,547,025 130,758,660 133,202,475 129,537,582 126,213,331 120,494,856

52.88% 53.72% 56.06% 56.38% 57.27% 57.12%3.66% -1.83% 2.83% 2.63% 4.75% N/A

98,080,441 92,373,829 85,115,846 80,427,619 75,806,103 73,417,379 572,581 687,330 614,125 684,338 585,806 644,444

3,979,252 4,169,861 3,878,953 3,608,700 3,343,733 2,634,848 1,766,098 1,600,276 1,610,216 1,535,573 1,472,552 1,454,003

213,257 177,046 121,848 64,949 94,158 75,632 242,022 228,455 221,578 213,792 212,832 170,771

— — — — — — 76,578 82,679 90,526 95,412 94,644 95,122

— — — 290,588 201,680 213,736 — — — — — —

425,683 391,952 295,394 729,482 277,053 477,863

105,355,912 99,711,428 91,948,486 87,650,453 82,088,561 79,183,798

41.10% 40.96% 38.70% 38.15% 37.25% 37.54%5.66% 8.44% 4.90% 6.78% 3.67% N/A

103,696 190,356 181,321 217,306 213,117 133,739 141,862 16,543 4,016 3,994 3,930 2,067

15,220,868 12,735,145 12,250,516 12,338,026 11,870,913 11,135,737

15,466,426 12,942,044 12,435,853 12,559,326 12,087,960 11,271,543

6.03% 5.32% 5.23% 5.47% 5.48% 5.34%19.51% 4.07% -0.98% 3.90% 7.24% N/A

$ 256,369,363 $ 243,412,132 $ 237,586,814 $ 229,747,361 $ 220,389,852 $ 210,950,197

106

Debt Percentage ofGross Service Net General Actual Net Bonded Net Bonded

Fiscal Bonded Debt Fund Balance Bonded Debt Taxable Debt Per Debt Per

Year Outstanding Available Outstanding Valuation(1) Capita(2) Student (K-12)(2)

2014 $ 215,727,067 $ 34,094,558 $ 181,632,509 0.88 % $ 895 $ 6,5892014 233,532,906 35,907,610 197,625,296 0.96 974 7,1702013 220,492,593 35,308,619 185,183,974 0.93 930 6,8512012 237,045,005 36,492,010 200,552,995 1.01 1,032 7,5182011 192,966,761 34,955,836 158,010,925 0.79 818 6,0502010 208,314,466 30,696,262 177,618,204 0.88 937 6,9372009 224,369,466 27,420,575 196,948,891 1.01 1,042 7,8112008 238,809,466 25,369,113 213,440,353 1.12 1,181 8,5522007 248,984,466 20,304,375 228,680,091 1.30 1,301 9,2542006 238,545,000 16,461,302 222,083,698 1.30 1,283 9,040

Total Primary Percentage ofGovernment Actual Total Total Percentage of

Fiscal Certificates of Capital Debt Taxable Debt Per Debt Per Personal

Year Participation Leases Outstanding(3) Valuation(1) Capita(2) Student (K-12)(2) Income(4)

2014 $ — $ — $ 215,727,067 1.05 % $ 1,063 $ 7,826 — %2013 — — 233,532,906 1.17 1,173 8,639 — 2012 — — 220,492,593 1.11 1,135 8,266 1.722011 7,025,000 — 244,070,005 1.22 1,264 9,345 2.012010 7,980,000 — 200,946,761 1.00 1,060 7,848 1.732009 8,895,000 — 217,209,466 1.11 1,149 8,615 1.922008 9,785,000 — 234,154,466 1.23 1,296 9,382 2.062007 10,650,000 — 249,459,466 1.42 1,419 10,095 2.372006 11,490,000 — 260,474,466 1.53 1,505 10,603 2.612005 12,325,000 — 250,870,000 1.59 1,464 10,304 2.69

(1) See Table VII for taxable property information.(2) See Table XIII for population and K-12 student enrollment data.(3) Includes general bonded debt and other governmental activities debt.(4) See Table XIII for personal income data, data not available for fiscal year 2013 and 2014.

More detailed information about the district's outstanding long-term debt is presented in the Notes to Basic Financial Statements section. The district does not have debt outstanding for business-type activities.

Other Governmental Activities Debt

General Bonded Debt

(Unaudited)

Table XPoudre School District

Ratios of Debt Outstanding and Outstanding Debt by TypeLast Ten Fiscal Years

107

Assessed value $ 2,496,790,355Debt limit (20% of assessed value) 499,358,071Debt applicable to limit:

General obligation bonds 215,727,067Less debt service funds available 34,094,558Total net debt applicable to limit 181,632,509

Legal debt margin $ 317,725,562

Actual value $ 20,618,814,547Debt limit (6% of actual value) 1,237,128,873Debt applicable to limit:

General obligation bonds 215,727,067Less debt service funds available 34,094,558Total net debt applicable to limit 181,632,509

Legal debt margin $ 1,055,496,364

2014 2013 2012 2011 2010

Debt limit on actual valuation $ 1,237,128,873 $ 1,193,812,075 $ 1,187,083,924 $ 1,204,350,984 $ 1,204,350,984Total net debt applicable to limit 181,632,509 197,625,296 185,183,974 200,552,995 158,010,925

Legal debt margin(1)$ 1,055,496,364 $ 996,186,779 $ 1,001,899,950 $ 1,003,797,989 $ 1,046,340,059

Total net debt applicable to limitas a percentage of debt limit 14.68% 15.60% 16.65% 13.12% 15.19%

2009 2008 2007 2006 2005

Debt limit on actual valuation $ 1,169,275,230 $ 1,140,753,574 $ 1,055,146,061 $ 1,021,395,385 $ 945,213,021Total net debt applicable to limit 177,618,204 196,948,891 213,440,353 228,680,091 222,083,698

Legal debt margin(1)$ 991,657,026 $ 943,804,683 $ 841,705,708 $ 792,715,294 $ 723,129,323

Total net debt applicable to limitas a percentage of debt limit 15.19% 17.26% 20.23% 22.39% 23.50%

(1) Under Colorado Revised Statute 22-42-104, a school district shall have a limit of bonded indebtedness of the greater of the following:

(a)

(b)

twenty percent of the latest valuation for assessment of the taxable property in such district, as certified by the county assessor to theBoard of County Commissioners; or twenty-five percent of the latest valuation of assessment of the taxable property in such district ifthe funded pupil count for the preceding three fiscal years has increased by a minimum of two and one-half percent each year. (SeeTable XIII for funded pupil count information.)

six percent of the most recent determination of the actual value of taxable property in the district, as certified by the county assessor tothe Board of County Commissioners.

Table XIPoudre School District

Legal Debt Margin Information

Fiscal Year

Last Ten Fiscal Years(Unaudited)

Legal Debt Margin Calculation for Fiscal Year 2014

Fiscal Year

108

Estimated Estimated Share of

Percentage OverlappingDebt Applicable to Debt

Taxing District Outstanding(1) the District(2)Outstanding

Estes Valley Public Library District $ 260,000 0.37 % $ 962Larimer Co. Centro Business Park Public

Improvement District No. 38 665,000 100.00 665,000Northern Colorado Water Conservancy 4,657,275 15.55 724,206South Timnath Metropolitan District No. 1 3,500,000 100.00 3,500,000Town of Wellington 260,000 100.00 260,000Windsor Highlands Metro District No. 5 3,500,000 100.00 3,500,000Windsor-Severance Fire Protection District 3,720,000 13.77 512,244

Total overlapping debt $ 9,162,412

Poudre School District direct debt 215,727,067 100.00 % 215,727,067

Total direct and overlapping debt 100.00 % $ 224,889,479

(1) Includes only general obligation debt supported by general property taxes.(2) Determined by ratio of assessed valuation of taxable property within Poudre School District to assessed valuation

of the overlapping unit.Source: Larimer County Assessor's Office and individual taxing entities.

(Unaudited)

Table XIIPoudre School District

Direct and Overlapping Governmental Activities DebtAs of June 30, 2014

109

Increase/Total Per Capita School Increase Funded Decrease Cost

Personal Personal Unemployment Estimated Enrollment in School Pupil in Funded Per

Year Income(1) Income(1)Rate Population(2) (K-12)(3)

Enrollment Count(3)Pupil Count Student(4)

2014 $ — $ — 4.2% 202,918 27,564 1.97% 26,849.1 1.91% $ 9,237

2013 — — 6.2% 199,100 27,032 1.34% 26,345.5 1.28% 9,199

2012 12,826,581,000 41,311 6.7% 194,317 26,675 2.13% 26,012.7 2.03% 9,277

2011 12,149,896,000 39,767 6.9% 193,167 26,118 2.00% 25,496.0 2.14% 8,770

2010 11,585,090,000 38,546 7.3% 189,507 25,605 1.55% 24,960.6 1.51% 8,818

2009 11,291,870,000 37,844 7.0% 189,077 25,214 1.03% 24,590.0 1.67% 8,886

2008 11,378,132,000 38,848 4.1% 180,729 24,958 1.00% 24,185.0 1.17% 8,652

2007 10,541,856,000 36,766 3.3% 175,791 24,711 0.59% 23,905.0 0.60% 8,252

2006 9,968,398,000 35,397 3.9% 173,071 24,567 0.90% 23,763.5 0.87% 8,006

2005 9,330,387,000 34,323 4.1% 171,354 24,348 0.28% 23,559.5 0.36% 7,870

(1) Personal income information and the unemployment rate are not available for the population within the boundaries of Poudre School District. The district is located

in Larimer County so data pertaining to the county is used. Personal income information for 2013 and 2014 will not be available until 2015 and 2016, respectively.(2) Estimated population is based on the ratio of Poudre School District population to Larimer County population as determined by the 2000 census.(3) Includes charter schools. (4) Based on operating expenditures (total expenditures less debt service and capital outlay).

Sources: U.S. Bureau of Economic Analysis (total and per capita personal income) and Larimer County (unemployment rate and estimated population).

Poudre School DistrictLarimer County

Table XIIIPoudre School District

Demographic InformationLast Ten Fiscal Years

(Unaudited)

110

Percentage of Percentage ofNumber of Estimated Number of Estimated

Employees Rank Population(1)Employees Rank Population(1)

Colorado State University 6,183 1 1.92 % 6,905 1 2.54 %Poudre Valley Health Systems 5,124 2 1.59 2,100 4 0.77Poudre School District 3,546 3 1.10 3,254 2 1.20Center Partners 3,500 4 1.09 — 0.00Larimer County 1,600 5 0.50 1,200 7 0.44Hewlett-Packard 1,500 6 0.47 3,050 3 1.12Columnine Health Care Systems 1,365 7 0.42 — 0.00City of Fort Collins 1,148 8 0.36 1,300 6 0.48Banner Health Systems 1,129 9 0.35 — 0.00Woodward, Inc. 999 10 0.31 772 10 0.28Waterpik Technologies, Inc. — 0.00 837 8 0.31Agilent Technologies — — 1,400 5 0.52Celestica — — 780 9 0.29

Total 26,094 8.09 % 21,598 7.94 %

Estimated population is based on the ratio of Poudre School District population to Larimer County population from Larimer County Compassestimated county population. Used the Major Employers in Larimer County - 2011 report from the most recent Bond issue.

(Unaudited)

2014 2005

Employer

Table XIV

Poudre School DistrictMajor Employers of Larimer County

Current Fiscal Year and Ten Years Ago

111

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005Service As of As of As of As of As of As of As of As of As of As of

Start October October October October October October October October October OctoberSchool/Location Date 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Elementary SchoolsBacon 2003 Square Footage 65,299 65,299 65,299 65,299 65,299 65,299 65,299 65,299 65,299 65,299 Enrollment 503 519 519 474 433 485 492 447 443 393Bauder 1968 Square Footage 63,156 63,156 63,156 63,156 63,156 63,156 63,156 63,156 63,156 63,156 Enrollment 535 539 539 546 322 368 332 336 360 386Beattie 1972 Square Footage 45,655 45,655 45,655 45,655 45,655 45,655 45,655 45,655 45,655 45,655 Enrollment 282 288 288 292 289 358 373 390 426 390Bennett 1963 Square Footage 50,492 50,492 50,492 50,492 50,492 50,492 50,492 50,492 50,492 50,492 Enrollment 492 478 478 468 454 485 456 428 407 387Bethke 2008 Square Footage 62,691 62,691 62,691 62,691 62,691 62,691 — — — — Enrollment 543 435 435 363 323 277 — — — — Cache La Poudre 1963 Square Footage 53,993 53,993 53,993 53,993 53,993 53,993 53,993 53,993 53,993 53,993 Enrollment 314 313 313 288 296 366 371 388 400 396Dunn 1949 Square Footage 45,957 45,957 45,957 45,957 45,957 45,957 45,957 45,957 45,957 37,543 Enrollment 415 400 400 408 411 451 441 433 411 412Eyestone 1973 Square Footage 62,708 62,708 62,708 62,708 62,708 62,708 62,708 62,708 62,708 62,708 Enrollment 443 463 463 458 501 541 512 740 704 607Harris Bilingual 1919 Square Footage 38,599 38,599 38,599 38,599 38,599 38,599 38,599 38,599 38,599 38,599 Enrollment 289 288 288 291 300 351 336 332 324 320Irish 1968 Square Footage 52,291 52,291 52,291 52,291 52,291 52,291 52,291 52,291 52,291 47,491 Enrollment 305 326 326 321 337 348 373 359 355 379Johnson 1988 Square Footage 56,396 56,396 56,396 56,396 56,396 56,396 56,396 56,396 56,396 56,396 Enrollment 413 454 454 452 480 502 489 489 502 511Kruse 1992 Square Footage 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 Enrollment 524 517 517 498 468 534 503 476 495 495Lab School 1919 Square Footage 18,018 18,018 18,018 18,018 18,018 18,018 18,018 18,018 18,018 18,018 Enrollment 104 103 103 129 113 122 120 119 131 135Laurel 1993 Square Footage 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 Enrollment 421 406 406 382 355 400 349 307 351 348Linton 1989 Square Footage 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 Enrollment 420 439 439 447 416 500 488 503 510 528Livermore 1953 Square Footage 11,292 11,292 11,292 11,292 11,292 11,292 11,292 11,292 11,292 11,292 Enrollment 42 42 42 43 44 68 74 71 73 60Lopez 1986 Square Footage 57,639 57,639 57,639 57,639 57,639 57,639 57,639 57,639 57,639 57,639 Enrollment 404 382 382 372 371 450 459 459 486 495McGraw 1992 Square Footage 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 Enrollment 475 466 466 494 462 524 519 496 475 501Moore 1956 Square Footage 51,670 51,670 51,670 51,670 51,670 51,670 51,670 51,670 51,670 49,170 Enrollment — — — — 223 258 276 311 320 383O'Dea 1964 Square Footage 48,018 48,018 48,018 48,018 48,018 48,018 48,018 48,018 48,018 48,018 Enrollment 412 382 382 336 327 395 345 355 337 302Olander 1990 Square Footage 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 51,384 Enrollment 427 419 419 367 348 382 390 395 418 423

Continued on next page

Table XVPoudre School District

Building StatisticsLast Ten Fiscal Years

(Unaudited)

Fiscal Year

112

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005Service As of As of As of As of As of As of As of As of As of As of

Start October October October October October October October October October OctoberSchool/Location Date 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Putnam 1956 Square Footage 59,101 59,101 59,101 59,101 59,101 59,101 59,101 59,101 59,101 59,101 Enrollment 318 332 332 356 322 368 387 379 351 359Red Feather 1985 Square Footage 9,001 9,001 9,001 9,001 9,001 9,001 9,001 9,001 9,001 9,001 Enrollment 27 27 27 31 35 34 40 47 49 51Rice 2007 Square Footage 62,691 62,691 62,691 62,691 62,691 62,691 62,691 — — — Enrollment 400 373 373 347 329 316 317 — — — Riffenburgh 1968 Square Footage 48,433 48,433 48,433 48,433 48,433 48,433 48,433 48,433 48,433 48,433 Enrollment 373 313 313 272 290 336 368 383 345 373Shepardson 1978 Square Footage 50,516 50,516 50,516 50,516 50,516 50,516 50,516 47,364 47,364 47,364 Enrollment 351 347 347 342 328 403 424 463 484 485Stove Prairie 1896 Square Footage 7,849 7,849 7,849 7,849 7,849 7,849 7,849 8,393 8,393 5,698 Enrollment 46 46 46 51 40 51 49 50 44 39Tavelli 1968 Square Footage 62,537 62,537 62,537 62,537 62,537 62,537 62,537 62,537 62,537 62,537 Enrollment 550 520 520 540 537 637 606 607 597 604Timnath 1919 Square Footage 66,232 66,232 66,232 66,232 66,232 66,232 66,232 66,232 66,232 66,232 Enrollment 299 300 300 303 320 427 577 559 515 449Traut 1998 Square Footage 50,871 50,871 50,871 50,871 50,871 50,871 50,871 50,871 50,871 50,871 Enrollment 449 453 453 468 468 525 525 527 526 525Werner 1987 Square Footage 50,300 50,300 50,300 50,300 50,300 50,300 50,300 50,300 50,300 50,300 Enrollment 555 560 560 502 462 512 498 461 465 498Zach 2002 Square Footage 63,092 63,092 63,092 63,092 63,092 63,092 63,092 63,092 63,092 63,092 Enrollment 641 609 609 607 609 621 609 573 588 512

Middle SchoolsBlevins 1968 Square Footage 104,635 104,635 104,635 104,635 104,635 104,635 104,635 104,635 104,635 104,635 Enrollment 545 511 511 526 551 551 538 529 518 513Boltz 1972 Square Footage 85,120 85,120 85,120 85,120 85,120 85,120 85,120 85,120 85,120 85,120 Enrollment 614 570 570 592 641 636 649 686 770 884Cache La Poudre 1949 Square Footage 73,913 73,913 73,913 73,913 73,913 73,913 73,913 73,913 73,913 73,913 Enrollment 304 329 329 346 365 380 412 376 400 445Kinard 2006 Square Footage 112,735 112,735 112,735 112,735 112,735 112,735 112,735 112,735 — —

Enrollment(1) 774 761 761 781 800 856 781 724 428 209 Lesher 1960 Square Footage 93,686 93,686 93,686 93,686 93,686 93,686 93,686 93,686 85,200 84,700 Enrollment 733 693 693 683 667 613 620 583 546 619Lincoln 1974 Square Footage 100,660 100,660 100,660 100,660 100,660 100,660 100,660 100,660 100,336 100,336 Enrollment 488 506 506 478 436 409 406 482 524 638Preston 1994 Square Footage 127,966 127,966 127,966 127,966 127,966 127,966 127,966 127,966 127,966 125,316 Enrollment 1,058 889 889 753 746 775 810 810 908 955Webber 1990 Square Footage 122,787 122,787 122,787 122,787 122,787 122,787 122,787 122,787 122,787 120,502 Enrollment 799 762 762 761 795 831 831 833 866 849Wellington 1925 Square Footage 59,556 59,556 59,556 59,556 59,556 59,556 59,556 59,556 59,556 59,556 Enrollment 423 385 385 360 345 380 332 331 315 330

Continued on next page

Fiscal Year

Table XVPoudre School District

Building StatisticsLast Ten Fiscal Years

(Unaudited)

113

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005Service As of As of As of As of As of As of As of As of As of As of

Start October October October October October October October October October OctoberSchool/Location Date 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Senior High SchoolsCentennial 1907 Square Footage 39,967 39,967 39,967 39,967 39,967 39,967 39,967 39,967 39,967 39,967 Enrollment 139 146 146 150 147 146 127 113 100 123Fort Collins 1995 Square Footage 286,552 286,552 286,552 286,552 286,552 286,552 286,552 286,552 286,552 286,552 Enrollment 1,499 1,655 1,655 1,661 1,727 1,137 1,184 1,226 1,377 1,448Fossil Ridge 2004 Square Footage 296,375 296,375 296,375 296,375 296,375 296,375 296,375 296,375 296,375 296,375 Enrollment 2,085 1,959 1,959 1,912 1,746 1,201 1,059 983 748 471Poudre 1962 Square Footage 274,263 274,263 274,263 274,263 274,263 274,263 274,263 274,263 274,263 274,263 Enrollment 1,756 1,798 1,798 1,833 1,899 1,672 1,725 1,786 1,797 1,783Rocky Mountain 1973 Square Footage 291,858 291,858 291,858 291,858 291,858 291,858 291,858 291,858 291,858 291,858 Enrollment 1,935 1,962 1,962 2,001 2,093 1,681 1,728 1,727 1,719 1,765

Other LocationsBarton (Early Childhood) 1957 Square Footage 30,530 30,530 30,530 30,530 30,530 30,530 30,530 30,530 30,530 30,530Fullana Learning Center 1975 Square Footage 24,109 24,109 24,109 24,109 24,109 24,109 24,109 24,109 24,109 24,109Polaris 1906 Square Footage 22,434 22,434 22,434 22,434 22,434 22,434 22,434 22,434 22,434 22,434Other District Structures N/A(on and off campus) Square Footage 302,361 302,361 304,544 303,144 303,144 303,144 262,429 260,527 260,527 264,713

(1) Kinard Junior High was housed in Fossil Ridge High School for fiscal years 2005 and 2006.

Changes in square footage are the result of modular additions or permanent additions to buildings.

Data as of October, since actual student count (enrollment) occurs on October 1.

Source: Poudre School District Operations Department (square footage and service start date).

(Unaudited)

Fiscal Year

Table XVPoudre School District

Building StatisticsLast Ten Fiscal Years

114

Function 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Instruction 1,932.78 1,920.83 1,858.68 1,779.39 1,858.25 1,870.02 1,836.51 1,822.79 1,813.80 1,805.52

Support Services:

Students 257.28 254.72 245.10 233.57 242.61 226.53 206.88 198.72 201.80 189.02

Instructional Staff 206.98 208.15 200.54 196.00 207.71 199.39 198.99 190.99 188.20 190.51

General Administration 14.00 13.00 11.50 11.50 13.81 14.81 14.19 17.01 16.01 13.89

School Administration 195.89 200.04 181.02 176.15 183.52 180.04 183.98 184.13 181.34 175.48

Business Services 27.01 27.51 26.91 27.16 31.02 31.28 32.65 36.65 32.65 34.12

Operations and Maintenance 227.39 229.27 227.14 227.82 238.07 243.99 239.25 245.75 246.12 237.45

Transportation 52.13 49.55 46.30 43.28 44.78 52.40 52.71 48.51 48.05 46.92

Central 146.29 145.16 147.16 139.54 154.20 158.30 175.30 161.41 161.32 153.57

Other 4.17 4.92 5.48 5.73 7.24 10.99 14.12 11.21 11.01 10.43

Food Service Operations 105.04 101.66 96.67 98.80 99.79 106.25 101.55 99.53 91.74 91.46

Community Services 3.50 3.50 3.50 3.50 3.86 3.86 3.50 4.16 3.80 3.45

Property 1.00 1.00 1.00 1.00 1.50 4.00 6.00 6.00 6.00 6.00

Total 3,173.46 3,159.31 3,051.00 2,943.44 3,086.36 3,101.86 3,065.63 3,026.86 3,001.84 2,957.82

Source: Poudre School District Human Resources

Table XVI

A Full-time Equivalent (FTE) is considered to be an employee who is assigned 8 hours per day for the respective position's calendar. For example, a teacher working 8hours per day on a 186 day calendar is considered 1.0 FTE. An Instrucitonal Para Professional working 8 hours per day on a 185 day calendar is also considered 1.0 FTE.

Poudre School DistrictFull-Time Equivalent District Employees

Last Ten Fiscal Years(Unaudited)

Fiscal Year

115

Table XVII Poudre School District

Certified Staff Data June 30, 2014 (Unaudited)

All staff that instruct, direct, or supervise instruction are required to possess a valid Colorado teaching certificate or license. To obtain a certificate or license, an individual must apply to the Colorado Department of Education and meet all the requirements for a teaching license or administrative license. The requirements for each license endorsement are determined by Colorado Revised Statutes and Colorado Department of Education Regulations. The district’s contract with certified employees is conditional upon the staff having in full force and effect a valid Colorado teaching certificate or license at all times during the term of the contract. Colorado certificate or license requirements include: • Appropriate degree from an accredited college. • Completion of an approved educator preparation program. • Demonstrated competencies in basic skills, liberal arts, subject area, and pedagogy as determined by

the Program of Licensing Assessments for Colorado Educators (PLACE™)(license only). • Background check based on fingerprints. • Completion of an approved induction program (license only). • Performance assessment. • Ongoing professional development. Poudre School District’s current certified staff averages 11.83 years in-district experience with the following educational level distribution: Bachelor's Master's Doctorate Degree Degree Degree ________________ ______________ _______________ 34.1% 64.5% 1.4% Funded pupil count per instructional staff was 14.26 for the 2013-14 school year. Certified staffing positions represent 1.000 FTE for a full-time, school year employee, including classroom teachers, counselors, media specialists, etc. On average, certified compensation at 1.000 FTE is approximately $64,923.

116

Table XVIIIPoudre School District

Free and Reduced Student Lunch Participation by School(Unaudited)

Percent ofPercent of Percent of Enrollment

Free Enrollment Reduced Enrollment on Free

School Enrollment1 Participation on Free Participation on Reduced and Reduced

High School

Fort Collins 1,526 367 24.05% 90 5.90% 29.95%Fossil Ridge 2,109 142 6.73% 42 1.99% 8.72%Poudre 1,804 542 30.04% 104 5.76% 35.80%Rocky Mountain 1,979 424 21.42% 93 4.70% 26.12%

Total 7,418 1,475 19.88% 329 4.44% 24.32%

Middle School

Blevins 548 176 32.12% 59 10.77% 42.89%Boltz 618 183 29.61% 48 7.77% 37.38%Cache La Poudre 305 82 26.89% 17 5.57% 32.46%Kinard 774 36 4.65% 15 1.94% 6.59%Lesher 738 254 34.42% 41 5.56% 39.98%Lincoln 492 305 61.99% 39 7.93% 69.92%Preston 1,062 113 10.64% 25 2.35% 12.99%Webber 806 161 19.98% 72 8.93% 28.91%Wellington 427 119 27.87% 35 8.20% 36.07%

Total 5,770 1,429 24.77% 351 6.08% 30.85%

Elementary

Bacon 543 59 10.87% 22 4.05% 14.92%Bauder 606 284 46.86% 48 7.92% 54.78%Beattie 318 122 38.36% 27 8.49% 46.85%Bennett 497 104 20.93% 20 4.02% 24.95%Bethke 544 14 2.57% 4 0.74% 3.31%Bilingual 319 185 57.99% 12 3.76% 61.75%Cache La Poudre 332 109 32.83% 16 4.82% 37.65%Dunn 415 82 19.76% 23 5.54% 25.30%Eyestone 483 130 26.92% 38 7.87% 34.79%Irish 392 306 78.06% 22 5.61% 83.67%Johnson 413 85 20.58% 16 3.87% 24.45%Kruse 557 112 20.11% 34 6.10% 26.21%Lab School 105 27 25.71% 7 6.67% 32.38%Laurel 458 236 51.53% 33 7.21% 58.74%Linton 458 203 44.32% 25 5.46% 49.78%Livermore 34 2 5.88% 2 5.88% 11.76%Lopez 439 122 27.79% 26 5.92% 33.71%McGraw 502 81 16.14% 10 1.99% 18.13%O'Dea 443 182 41.08% 23 5.19% 46.27%Olander 461 138 29.93% 27 5.86% 35.79%Putnam 384 291 75.78% 15 3.91% 79.69%Red Feather 40 11 27.50% 1 2.50% 30.00%Rice 461 109 23.64% 41 8.89% 32.53%Riffenburgh 442 147 33.26% 39 8.82% 42.08%Shepardson 385 93 24.16% 18 4.68% 28.84%Stove Prairie 46 15 32.61% 3 6.52% 39.13%Tavelli 587 242 41.23% 31 5.28% 46.51%Timnath 331 125 37.76% 17 5.14% 42.90%Traut Core Knowledge 481 34 7.07% 13 2.70% 9.77%Werner 557 54 9.69% 13 2.33% 12.02%Zach 641 16 2.50% 5 0.78% 3.28%

Total 12,674 3,720 29.35% 631 4.98% 34.33%

Alternative

Centennial 177 62 35.03% 5 2.82% 37.85%Polaris 286 71 24.83% 14 4.90% 29.73%PCA 76 43 56.58% 11 14.47% 71.05%

Total 539 176 32.65% 30 5.57% 38.22%

Grand Total 26,401 6,800 25.76% 1,341 5.08% 30.84%

1 Enrollment is from the Child Nutrition Department dated 10/01/2013 and does not include charter schools

Source: Poudre School District Child Nutrition

117

Colorado StateMandatedScheduleSectionColorado Department ofEducation Auditor’sElectronic Financial DataIntegrity Check FiguresThe District is required to transmit financialdata electronically to the Colorado Depart-ment of Education. To ensure dataaccuracy, it is mandated that this report beincluded in the Comprehensive AnnualFinancial Report and that it be verified byindependent auditors specifically trained instate coding requirements.

Colorado Department of EducationAuditors Integrity ReportDistrict: 1550 - POUDRE R-1

Fiscal Year 2013-14Colorado School District/BOCES

Revenues, Expenditures, & Fund Balance by FundFund Type &Number

Governmental

Beg Fund Balance & Prior Per Adj (6880*)

+

1000 - 5999 Total Revenues & Other Sources

0001-0999 Total Expenditures & Other Uses-

6700-6799 & Prior Per Adj (6880*) Ending Fund Balance

=

10 General Fund 52,765,985 211,561,034 209,751,890 54,575,129

18 Risk Mgmt Sub-Fund of General Fund 0 0 0 0

19 Colorado Preschool Program Fund 0 0 0 0

Sub- Total 52,765,985 211,561,034 209,751,890 54,575,129

11 Charter School Fund 5,516,202 15,159,606 15,603,645 5,072,164

20,26-29 Special Revenue Fund 0 0 0 0

21 Capital Reserve Spec Revenue Fund 0 0 0 0

22 Govt Designated-Purpose Grants Fund 0 13,376,081 13,376,081 0

23 Pupil Activity Special Revenue Fund 5,498,867 11,054,591 11,370,325 5,183,133

24 Full Day Kindergarten Mill Levy Override 0 0 0 0

25 Transportation Fund 0 0 0 0

31 Bond Redemption Fund 35,907,610 27,975,852 29,788,904 34,094,558

39 Non-Voter Approved Debt Service Fund 0 0 0 0

41 Building Fund 36,457,675 170,258 16,031,293 20,596,640

42 Special Building Fund 0 0 0 0

43 Capital Reserve Capital Projects Fund 0 0 0 0

Totals 136,146,339 279,297,423 295,922,138 119,521,624

Proprietary

51 Food Service Fund 2,431,887 7,795,120 8,091,533 2,135,474

50 Other Enterprise Funds -893,739 415 209,794 -1,103,118

64 (63) Risk-Related Activity Fund 0 0 0 0

60,65-69 Other Internal Service Funds 16,085,951 201,637 1,512,181 14,775,407

Totals 17,624,099 7,997,172 9,813,508 15,807,763

Fiduciary

70 Other Trust and Agency Funds 0 0 0 0

72 Private Purpose Trust Fund 370,113 71,406 97,318 344,202

73 Agency Fund 0 0 0 0

74 Pupil Activity Agency Fund 0 0 0 0

79 GASB 34:Permanent Fund 0 0 0 0

85 Foundations 0 0 0 0

Totals 370,113 71,406 97,318 344,202

FINAL

*If you have a prior period adjustment in any fund (Balance Sheet 6880), the amount of your priorperiod adjustment is added into both your ending and beginning fund balances on this report.

12/22/14

118

MissionEducate...Every Child,

Every Day

VisionPoudre School District

exists to support and

inspire every child

to think, to learn, to

care, and to graduate

prepared to be successful

in a changing world.